Oil prices edge higher as US crude stockpiles shrink
Oil prices held steady after US crude inventories fell by the most since December, suggesting a potential near-term supply shortage.
Brent traded near $74 after closing 1.1% higher on Wednesday, while West Texas Intermediate was below $70, News.Az reports, citing Bloomberg.
American stockpiles shrank by 3.34 million barrels last week, dropping to the lowest level in a month, while inventories of gasoline also dipped, according to government data.
Oil has trended higher since early March as sanctions and tariffs from the Trump administration raise the potential for supply disruption from producers including Iran and Venezuela. That’s prompted traders to snap up bullish oil options to hedge against price spikes.
“Economic concerns surrounding Trump’s advocacy for tariffs remain strong, posing a threat to future fuel demand,” said Priyanka Sachdeva, a senior market analyst for brokerage Phillip Nova Pte in Singapore.
Still, major oil traders including Trafigura Group and Gunvor Group are bearish on crude prices over the rest of the year due to rising supply, particularly from outside OPEC+. The producer group is also scheduled to start reviving idled output next month, the first in a series of planned hikes.
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