At 10:17 GMT, Light Crude Oil Futures are trading $73.13, down $0.64 or -0.87%.

Crude Oil Faces Pressure from Rising U.S. Stockpiles

Oil prices have dipped following a reported increase in U.S. crude inventories, signaling weaker demand. The American Petroleum Institute (API) reported a rise in crude and gasoline stockpiles last week, while distillate inventories declined. Traders are now looking ahead to the official data from the Energy Information Administration (EIA), which is set for release later today.

Concerns over an oversupplied market are compounded by expectations that OPEC+ will stick to its planned production increases starting in April. With supply disruptions easing—particularly in Libya, where exports have resumed—the market is struggling to find bullish catalysts in the near term.

Trade Tariff Risks Cloud the Demand Outlook

Investor sentiment is further dampened by looming tariff threats from the U.S. administration. The White House reaffirmed plans to impose a 25% tariff on Canadian and Mexican imports starting Saturday. Canada, supplying 3.9 million barrels per day (bpd) to the U.S., accounts for roughly half of total U.S. imports. Mexico contributes an additional 733,000 bpd. Any disruption in cross-border trade flows could create volatility in oil prices, though potential supply tightness may provide temporary support to U.S. crude benchmarks.

According to analysts, crude prices continue to react sharply to shifting trade policies, with traders positioning for possible demand-side consequences if tariffs go into effect. A stronger U.S. dollar, driven by protectionist trade measures, could also weigh on global oil demand by making crude more expensive for foreign buyers.

OPEC+ Meeting and Geopolitical Factors in Focus

Market participants are also watching developments within OPEC+ ahead of a key ministerial meeting next Monday. The cartel’s recent discussions have been overshadowed by geopolitical tensions, particularly efforts by the U.S. to pressure Russia via lower oil prices. Washington’s push for increased OPEC+ production is seen as an attempt to mitigate inflation and reduce domestic gasoline costs, but whether Saudi Arabia and its allies comply remains uncertain.