Oil Steadies Amid Inventory Surge and Trade Tensions
Oil prices steadied after an industry report revealed a significant increase in U.S. crude stockpiles. The market remains attentive to potential trade retaliation from President Donald Trump.
West Texas Intermediate (WTI) hovered around $73 per barrel, following a nearly 4% gain over the past three trading sessions. Brent crude closed at $77.
The American Petroleum Institute reported a 9-million-barrel increase in inventories last week. If confirmed by official data later on Wednesday, this would mark the largest weekly gain in a year.
The start of 2025 has been volatile for oil. Prices initially rose due to increased heating demand during the cold Northern Hemisphere winter and U.S. sanctions on Russian crude. However, Trump's trade tariffs have sparked concerns of potential trade wars, driving futures lower over the past three weeks.
There are indications that U.S. sanctions are impacting Russian crude exports. Several million barrels from Pacific platforms are stranded due to blacklisting of shuttle tankers transporting them to China. Chinese refiners are also being offered lower prices for ESPO-grade crude to attract buyers.
Crude stockpiles at Cushing, Oklahoma, increased by 400,000 barrels last week, according to the American Petroleum Institute. Gasoline and distillate inventories declined.