03:23 PM EDT, 07/23/2025 (MT Newswires) -- Commercial crude stockpiles in the US decreased more than projected last week as motor gasoline, propane and propylene inventories dropped, government data showed Wednesday.

Inventories of crude, excluding the strategic petroleum reserve, fell by 3.2 million barrels to 419 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a draw of 1.5 million barrels in a survey compiled by Bloomberg.

Motor gasoline stocks fell by 1.7 million barrels, while propane and propylene inventories were down by 500,000 barrels. Distillate fuel added 2.9 million barrels. Total commercial petroleum inventories dropped by 5.2 million barrels.

Both gasoline and distillate fuel output increased on a weekly basis, the agency said.

West Texas Intermediate crude was up 0.2% at $65.41 a barrel in Wednesday late-afternoon trade, while Brent rose 0.1% to $68.65. Both benchmarks posted losses in the previous session.

There are concerns regarding US President Donald Trump's potential tariffs, with the Aug. 1 deadline fast approaching, ING Bank said in a report published Wednesday. "Expectations that the market will move into a large surplus later in the year are generating additional headwinds for the market."

The International Energy Agency recently lowered its global oil demand outlook for 2025 and 2026 while raising supply estimates amid speculation that oil producing nations may be gearing up to pause output gains.

Japan has agreed to pay 15% in tariffs on its exports to the US, Trump said in a social media post Tuesday. Japan will invest $550 billion in the US, "which will receive 90% of the profits" as part of the trade deal, Trump wrote.

The US and the European Union are nearing a trade deal that would set 15% tariffs on European imports, the Financial Times reported Wednesday, citing sources.