Oil prices inched up on US stockpile decline, but trade uncertainties lingered
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.
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