Oil prices dipped on Thursday following an industry report showing the first increase in U.S. crude stockpiles since mid-November, while market participants await further developments on global trade from President Donald Trump.
Brent crude slipped below $79 a barrel, continuing a series of losses that began last Thursday. West Texas Intermediate (WTI) crude also hovered near $75 per barrel. According to the American Petroleum Institute (API), U.S. crude inventories rose by 1 million barrels last week, and fuel stockpiles surged. The increase in stockpiles came at a time when inventories typically draw down toward the end of the year due to tax considerations. Government data on crude stocks is expected later on Thursday.
Despite the dip, oil prices remain higher for the year, buoyed by factors such as colder weather in the Northern Hemisphere, which has raised heating demand, and U.S. sanctions on Russia’s oil sector that have disrupted global markets. India has also extended support for Russian insurers as it continues to purchase discounted Russian oil.
As the market watches closely, the new Trump administration’s stance on trade continues to dominate sentiment. The president has threatened tariffs on China, Canada, and Mexico, and has warned of additional sanctions on Russia unless President Vladimir Putin takes steps to end the ongoing war in Ukraine.
Vandana Hari, founder of Vanda Insights in Singapore, noted that while the tariff threats are seen as bargaining chips, there is cautious optimism that Trump might secure a diplomatic resolution with Putin. However, she emphasized that the market will need more tangible assurances before fully factoring in any potential progress.
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