Oil Steadies Amidst Tariff Uncertainty and Inventory Focus
Brent crude hovered above $77 per barrel, while West Texas Intermediate (WTI) traded near $74. Market participants assessed the potential implications of President Trump's proposed tariffs on imports from Canada, Mexico, and China. Over 50% of US crude imports originate from Canada.
Stockpile levels drew attention, with preliminary data from the American Petroleum Institute indicating an increase of 2.86 million barrels last week. Confirmation by official data would mark the first weekly rise in inventories in 10 weeks.
Crude prices faced volatility at the beginning of the year. US sanctions on Russia and severe weather initially boosted prices, but concerns over the impact of a potential Trump-led trade war and weak economic data from China led to a subsequent decline.
Despite the tariff announcement, President Trump has urged OPEC+ to assist in lowering crude prices, partly to pressure Moscow to halt the Ukraine conflict.
Market indicators continue to signal market tightness. WTI's prompt spread is in backwardation at 85 cents per barrel, indicative of a bullish outlook. This contrasts with a 40-cent gap observed a month ago.