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Oil benchmarks held at a one-month high as traders continued mulling over the impact of a sharper-than-expected draw in US crude inventories. However, sentiments were tempered by the potential impact of escalating trade restrictions on global demand.

Brent crude futures rose 24 cents to $74.03 a barrel.

West Texas Intermediate (WTI) crude gained 27 cents to $69.92.

Sentiments remained supported by the Energy Information Administration’s (EIA) report of a larger-than-expected decline in US crude stockpiles of 3.3 million barrels.

However, optimism was tempered by the prospect of tighter US restrictions on imports. On Wednesday, the US government announced a sweeping 25% tariff on imported automobiles and automotive parts, set to take effect on 2 April and 3 May, respectively. 

Meanwhile, India’s Reliance Industries—operator of the world’s largest refining complex—reportedly halted crude imports from Venezuela, opting to sidestep a 25% US tariff on buyers of the sanctioned country’s oil.

Written by: Derek Yong