At 11:25 GMT, Light crude oil futures are trading $67.46, down $0.22 or -0.33%.
Supply Data Supports Prices, But Economic Fears Weigh
Oil prices found support midweek after U.S. gasoline stocks posted a significant drawdown of 5.7 million barrels, far exceeding analyst expectations of a 1.9 million-barrel decline. Distillate inventories also fell more than anticipated, despite a build in crude oil stocks.
The data fueled expectations of rising seasonal demand, helping crude rally 2% on Wednesday. However, macroeconomic concerns—including the threat of escalating trade tariffs and their impact on global growth—continue to limit bullish momentum.
U.S. President Donald Trump’s renewed focus on tariffs, particularly his move to impose additional duties on steel and aluminum imports from Canada, has rattled investor confidence. Markets are wary of potential retaliatory measures from major trading partners, which could disrupt economic activity and dampen energy demand. Additionally, U.S. stock markets experienced steep declines, with the Nasdaq falling 4%—its sharpest drop since 2022—further weighing on crude sentiment.
OPEC+ Faces Compliance Challenges Amid Rising Output
On the supply front, OPEC+ reported a notable increase in February production, led by Kazakhstan. The producer group is set to raise output in April, although analysts suggest that prolonged price weakness could force them to reconsider.
Russia’s Deputy Prime Minister Alexander Novak stated that OPEC+ may adjust its strategy post-April if market conditions warrant it. Meanwhile, U.S. crude production is expected to surpass earlier projections, reaching an average of 13.61 million barrels per day this year, adding further pressure on prices.