Oil prices witnessed a notable decline today, impacted by rising U.S. stockpiles and concerns over escalating trade tensions between the United States and China. Brent crude fell to $75.99 per barrel, while West Texas Intermediate (WTI) dropped to $72.59 per barrel. The sharp market fluctuations observed recently resulted from China’s retaliatory measures, imposing tariffs on U.S. energy imports, further pressuring global demand.
On another note, data from the American Petroleum Institute (API) revealed an unexpected increase in U.S. crude oil inventories by 5.03 million barrels, surpassing forecasts of a 2 million-barrel rise. Gasoline stockpiles also saw an increase. These figures indicate weakening fuel consumption in the United States, intensifying investor pessimism and contributing to short-term oil price declines, potentially affecting market stability in the near future.
Politically, the U.S. President reinstated sanctions on Iran, aiming to reduce its oil exports to zero. This measure could impact approximately 1.5 million barrels per day of Iranian supply, potentially limiting further price declines in the medium term. However, markets remain focused on Iran’s ability to circumvent these sanctions and how importing countries will respond to this policy shift.
Amid these mixed factors, attention now turns to the official report from the U.S. Energy Information Administration (EIA), which will provide a clearer picture of market balance. At the same time, investors are closely monitoring OPEC+ decisions, with the alliance expected to continue its gradual production increases starting in April. This could maintain pressure on prices unless a fundamental shift occurs in global demand dynamics.
Additionally, Equinor announced adjustments to its long-term strategy, raising its oil and gas production outlook for 2030 to 2.2 million barrels per day, compared to the previous estimate of 2 million barrels.
