Oil Prices Dip Amid Inventory Increase and Tariff Concerns
Oil prices retreated on Wednesday following data that showed an increase in U.S. crude stockpiles and concerns over tariffs dampened sentiment.
Inventory Data
U.S. crude stockpiles witnessed a rise of 9.4 million barrels in the week ending February 7, according to industry data. Gasoline inventories declined by 2.51 million barrels, while distillate stocks dropped by 590,000 barrels.
EIA Forecast
The Energy Information Administration (EIA) revised its forecast for U.S. crude production upward to 13.59 million barrels per day in 2025.
Tariff Concerns
Tariff uncertainties related to the U.S. trade policies raised concerns about potential impacts on global economic growth and energy demand.
Market Factors
Despite the inventory increase and tariff worries, geopolitical tensions in the Middle East continue to provide support for oil prices. Concerns over supply disruption in the region stemming from the Gaza ceasefire situation and U.S. sanctions on Iran and Russia contributed to market jitters.