New York — The petroleum futures complex tumbled Wednesday on concerns that new tari

ffs imposed by the US and China on each other would slow economic growth, and on refined 

product inventory builds in the US. 

September NYMEX crude settled $2.23 lower at $66.94/b, while October ICE Brent settled 

$2.37 lower at $72.28/b. 

NYMEX September RBOB fell 8.45 cents to settle at $2.0195/gal, while September ULSD 

futures settled 5.34 cents lower at $2.1157/gal. 

"The market has tried to pick its head up over the past couple of weeks," said Tradition 

Energy vice president of research Gene McGillian. 

NYMEX  front-month  crude  has settled mostly between $67/b and $70/b since mid-July, 

ultimately failing with several attempted moves to the upside. 

China on Wednesday announced tariffs on an additional $16 billion worth of US imports, after 

the US earlier in the day said it would slap 25% tariffs on another $16 billion worth of imports 

from China. 

Several news agencies initially reported China had included US crude imports on its list, but 

while China included US refined product imports, it removed crude from its list. 

China  has  not  been  importing  as  much  US  crude lately anyway because of the tariff 

concerns. China's imports of crude from the US fell sharply in July and are expected to dro

p further in August. 

The  market  seemed  more  concerned  that  the growing US-China trade war could slow 

economic growth, lowering petroleum demand. 

Petroleum  futures  also  turned  lower  Wednesday  after  the  US  Energy  Information 

Administration reported builds in refined product inventories, and a smaller-than-expected 

drawdown in crude inventories. 

US gasoline stocks climbed 2.9 million barrels in the week that ended August 3 to 233.87 

million barrels, while distillate stocks were up 1.23 million barrels at 125.42 million barrels. 

US gasoline inventories climbed even refiners shifted to a higher distillate yield, and even as 

gasoline exports rose 75,000 b/d to 588,000 b/d. Also, analysts polled by S&P Global Platts 

were expecting a gasoline stock draw of 1.9 million barrels. 

Gasoline traders likely saw the 532,000 b/d drop in implied gasoline demand to 9.35 million 

b/d as a selling opportunity, although on a four-week moving average, implied demand was 

unchanged at 9.7 million b/d. 

US  distillate  inventories  climbed  1.23  million  barrels last week to 125.42 million barrels, 

exceeding analysts' expectations of a 550,000 barrel build. 

Combined low and ultra low sulfur diesel stocks on the USAC jumped 2.44 million barrels to 

36.73 million barrels, which was bearish for the New York-delivered NYMEX ULSD contract. 

USAC stocks are still tight, but the deficit to the five-year average has tightened to 15% in 

the week that ended August 3 from 25.4% in the week that ended July 6. 

US crude stocks fell 1.35 million barrels in the week that ended August 3, as higher refinery 

runs and exports offset a rise in crude imports, the EIA data showed.