Analyst: Oil prices face multiple bearish factors including tariffs, increasing inventories, and production.

OANDA Senior Market Analyst Kelvin Wong said, "Factors driving the decline in oil prices include uncertainty surrounding the implementation of various tariffs by the United States, as well as the potential increase in production by OPEC+." People are concerned that tariffs could suppress demand for oil, despite strong travel demand over the July 4th holiday weekend in the United States, API data shows that the United States added approximately 7.1 million barrels of crude oil inventory, although refined oil inventories decreased. Analysts at ING in a client report stated, "The overnight data from the American Petroleum Institute points to lower oil prices." They added, "Changes in refined oil are more constructive."