Oil Prices Retreat on Inventory Build, Tariff Concerns
Oil prices slipped on Thursday after a report showed an increase in U.S. crude stockpiles and as worries over tariffs weighed on sentiment.
Market Overview
* Brent futures: Down 0.29% to $75.82 a barrel
* U.S. West Texas Intermediate (WTI) crude: Down 0.42% to $71.95
Inventory Data
* U.S. crude inventories rose by 3.34 million barrels last week, according to sources citing American Petroleum Institute (API) data.
* Gasoline inventories increased by 2.83 million barrels, while distillate stocks declined by 2.69 million barrels.
Demand Concerns
* Tariff announcements by the Trump administration raised concerns about higher consumer costs, potentially weakening the global economy and reducing fuel demand.
* Demand worries in Europe and China also contributed to price pressures.
Supply Disruptions
* Russia reported a 30%-40% reduction in Caspian Pipeline Consortium oil flows after a drone attack on a pumping station in Ukraine.
* This cut equates to a potential loss of 380,000 barrels per day of market supply.
Hamas Negotiations
* Indirect negotiations between Israel and Hamas on a second stage of the Gaza ceasefire could reduce the risk of further supply disruptions.
Analysts' Outlook
* Analysts forecast an addition of around 2.2 million barrels of crude to U.S. stockpiles in the week ended February 14.
* This would mark the fourth consecutive week of storage increases, the first such instance since April 2024.
Upcoming Data
* Official oil inventory data from the U.S. Energy Information Administration (EIA) is expected on Thursday.