The EIA report also showed U.S. crude oil exports fell by 271,000 barrels a day last week, to 1.5 million barrels a day.
Mr. Navy said Thursday’s report on U.S. oil inventories wasn’t the only factor in oil’s decline, noting overall global demand is also becoming more of a concern. “There are more clouds as far as economies go, and the tariff disputes are also a factor.”
Alfonso Esparza at foreign-exchange trading group Oanda echoed Mr. Navy’s concerns regarding tariffs.
“The threat of a new round of tariffs on Chinese goods looms over the market,” Mr. Esparza said. “The Trump administration has toughened its stance on Chinese goods, with a $200 billion round of tariffs waiting in the wings. China is expected to retaliate escalating the trade war between the two economies and dragging down global growth forecasts.”