- WTI price remains under selling pressure around $66.45 in Thursday’s early Asian session.
- Crude oil stockpiles in the US rose by 3.614 million barrels last week, according to the EIA.
- Fear that Trump’s trade war will slow economic activity and cut crude demand undermines the WTI price.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.45 during the early Asian session on Thursday. The WTI price tumbles to its lowest since December 2021 as US crude oil stockpiles the US rose far more than expected.
Crude Oil inventories climbed last week. The Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending February 28 rose by 3.614 million barrels, compared to a fall of 2.332 million barrels in the previous week. The market consensus estimated that stocks would decrease by 290,000 barrels.
The OPEC+ announcement to maintain their production increase plan from April weighs on the WTI price. OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, decided to increase output for the first time since 2022
Furthermore, Oil traders are concerned that the tariffs on Canadian, Mexican, and Chinese goods that went into effect yesterday could slow growth, creating headwinds for WTI price.
Trump confirmed that tariffs on Canada and Mexico would go into effect on Tuesday. The measures Trump had previously reaffirmed the new March date after having initially set it for April. However, Trump is exempting automakers from newly imposed tariffs on Mexico and Canada for one month.
