West Texas Intermediate (WTI) oil prices are continuing their decline for the sixth consecutive session, trading around $74.90 during early European hours on Thursday. The downturn comes amid growing uncertainty surrounding US President Donald Trump’s proposed tariffs and energy policies, which are weighing on market sentiment regarding global economic growth and energy demand.
Traders are closely monitoring the potential impact of Trump’s proposed 10% tariff on Chinese imports, especially as China is the world’s largest oil importer and a major manufacturing hub. While the 10% tariff is much lower than the previously threatened 60%, it has somewhat alleviated some of the market concerns. However, additional threats from Trump to impose tariffs on the European Union, as well as 25% tariffs on Canada and Mexico, continue to add to the prevailing uncertainty in global markets.
The latest report from the American Petroleum Institute (API) indicated an unexpected increase in US crude oil inventories. According to the API Weekly Crude Oil Stock report, crude stockpiles rose by 1 million barrels for the week ending January 16, reversing five consecutive weeks of declines.
In addition, crude markets are facing potential supply disruptions as President Trump warned of “high levels” of sanctions on Russia, along with tariffs on Russian imports. Trump’s remarks, made on Wednesday, called for an urgent resolution to the war in Ukraine. He stated on Truth Social, “If we don’t make a ‘deal,’ and soon, I have no other choice but to put high levels of taxes, tariffs, and sanctions on anything being sold by Russia to the United States (US) and various other participating countries.”
Meanwhile, in a positive development for the oil market, Saudi Arabia’s crude oil exports reached an eight-month high in November, increasing by 4.7% to 6.2 million barrels per day (bpd), up from 5.9 million bpd in October. However, Saudi Arabia’s crude production showed a slight decline, falling to 8.9 million bpd from 9 million bpd.
On a regional note, several ports in Texas began reopening on Wednesday following disruptions caused by Winter Storm Enzo earlier in the week, which had severely impacted shipping and energy operations in the region.
Related topics:
Oil Prices Continue to Rise Amid Supply Concerns and Sanctions on Russia
Fidelity Launches Multi-Asset Fund in China to Tap Growing Retirement Market
