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Oil prices continued their downward trajectory for a fourth consecutive session on Wednesday, 5 March 2025, reaching their lowest levels since August 2021. The decline was driven by a sharp rise in US crude stockpiles and lingering concerns over the US’s recent trade restrictions.

Brent crude fell $1.74, or 2.45%, to settle at $69.30 per barrel.

WTI dropped $1.95, or 2.86%, to close at $66.31 per barrel.

Data from the US Energy Information Administration (EIA) showed crude stockpiles rising by 3.6 million barrels to 433.8 million barrels last week, far outpacing analysts’ expectations of a 341,000-barrel increase. This increase was driven by seasonal maintenance at refineries, reinforcing supply-side pressures even while gasoline and distillate inventories declined on the back of stronger exports.

However, the market saw a minor shift in sentiment as investors weighed potential adjustments to US trade measures. While broad tariffs on Canadian and Mexican imports remained in place, discussions within the US government had reportedly included possible relief on a 10% duty affecting Canadian energy products.

Written by: Derek Yong