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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $71.00 during the early Asian session on Thursday. The WTI price edges lower amid a large build in US crude stockpiles and worries about renewed US-China trade tensions.
US crude inventories rose sharply last week, signaling weaker demand. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending January 31 climbed by 8.664 million barrels, compared to a rise of 3.463 million barrels in the previous week. The market consensus estimated that stocks would increase by 3.2 million barrels.
Concerns of a potential trade war between the United States and China, the world’s top energy importer, could exert some selling pressure on the WTI price. On Tuesday, China’s finance ministry announced a package of tariffs on a range of US products, including crude oil, farm equipment, and some autos in an immediate response to a 10% tariff on Chinese imports announced by US President Donald Trump. Additionally, China put several companies, including Google, on notice for possible sanctions in a measured response to Trump’s tariffs.
On Wednesday, Iran’s President Masoud Pezeshkian called OPEC members to unite against potential US sanctions after Trump’s announcement of resuming the “maximum pressure” campaign against Iran during his first term. Meanwhile, Russia’s Deputy Prime Minister Alexander Novak said that the group of ministers from OPEC and allies headed by Russia (OPEC+) reviewed Trump’s proposal to increase production and decided that OPEC+ would begin increasing output on April 1 in accordance with previous plans.More By This Author:USD/CAD Trades With Mild Losses Near 1.4300 As Tariff Worries Ease WTI Holds Above $72.50 Amid Tariff Concerns EUR/GBP Recovers Some Lost Ground Above 0.8350, Eyes On ECB Rate Decision
