Oil prices are receding on Wednesday, as indications of stronger crude consumption in China were offset by market reservations about the wider financial impact of US duties.

Oil is negotiating in a narrow range, as signs of steady demand from increased travel during the summer in the northern hemisphere compete with concerns that US duties on commercial partners will slow down economic growth and fuel consumption, the Reuters notes.

Futures Brent (September contract) contracts fell 0.99% to $ 68.03 a barrel, while US crude West Texas Intermediate (August contract) declines 1.16% to $ 65.75.

US President Donald Trump has threatened 30% on imports from the European Union on August 1st, a level that according to European officials is unacceptable and would finish the rules of trade between two of the world’s largest markets.

The European Commission is preparing to target US products worth 72 billion euros if talks with Washington to reach trade agreement fail.

Trump also said Monday that the United States will impose “very strict duties” on Russia in 50 days if there is no agreement to end the war in Ukraine.

Meanwhile, Chinese state refineries increase production after maintenance to meet the highest demand for third trimester and to increase diesel and gasoline reserves that have been in many years, said traders and analysts.

“A possible culmination of Chinese oil demand often comes to the forefront, but we believe that worries are probably excessive, as a closer look shows that demand is durable,” Barclays said in a note on Wednesday.

The bank estimates that Chinese oil demand increased by 400,000 barrels per day (BPD) on an annual basis in the first half of the year to 17.2 million BPDs.

In the meantime, OPEC’s monthly report on Tuesday predicted that the global economy would do better in the second half of the year, enhancing the prospects for oil demand.

Brazil, China and India exceed expectations, while the US and the EU are recovering compared to last year.

US reserves of crude, spirits and gasoline increased last week, market sources reported, citing data from the US Petroleum Institute on Tuesday.

Slow stocks increased by 839,000 barrels a week on July 11, sources said. Gasoline reserves increased by 1.93 million barrels and distillers increased by 828,000 barrels.