Oil Dips on Crude Stockpile Build, Trump's Trade Moves Eyed
West Texas Intermediate (WTI) crude futures slid, extending losses from Thursday, after an industry report showed the first increase in U.S. crude stockpiles since mid-November. Brent crude closed lower at $79 a barrel.
According to a document obtained by Bloomberg, the American Petroleum Institute (API) reported a 1 million barrel rise in crude inventories and a surge in fuel stockpiles last week. Despite the increase, oil prices remain elevated year-to-date, supported by a cold snap in the Northern Hemisphere that increased heating demand and disruptions caused by U.S. sanctions on Russia.
Official government data on U.S. crude and fuel stockpiles is expected later on Thursday.
Traders are closely monitoring the incoming Trump administration's actions, particularly after tariff threats against China, Canada, and Mexico, and warnings of additional penalties on Russia if President Vladimir Putin does not engage on Ukraine.