Oil Dips on Inventory Gain, Awaits Trump Trade Pledges
Oil prices declined on Wednesday after an industry report indicated the first increase in U.S. crude stockpiles since mid-November. The market is also monitoring President Donald Trump's potential announcements on global trade.
Brent crude slipped below $79 per barrel, continuing a losing streak that began last Thursday. West Texas Intermediate (WTI) hovered around $75.
According to a document obtained by Bloomberg, the American Petroleum Institute (API) reported a 1 million-barrel increase in crude inventories and a surge in fuel stockpiles last week. Typically, U.S. crude stockpiles decrease towards the end of the year for tax reasons. Official government figures are expected later on Thursday.
Oil prices remain higher for the year due to a strong start driven by increased heating demand in the Northern Hemisphere and U.S. sanctions on Russia's oil industry. India has expanded support for Russian insurers to maintain the flow of discounted barrels.
The market remains on edge ahead of potential actions from the Trump administration, including tariff threats on China, Canada, and Mexico, as well as warnings of further penalties on Russia if President Vladimir Putin fails to engage in efforts to end the conflict in Ukraine.
"The tariff threats so far are only threats. They are bargaining chips," said Vandana Hari, founder of Vanda Insights in Singapore. "There may be cautious optimism that Trump will reach a rapprochement with Putin, but the market needs more tangible assurance" before factoring it into pricing, she added.