Oil Prices Decline as U.S Crude Inventories Climb
Oil prices dropped due to uncertainties in the worldwide commodity market. This was accompanied by an unforeseen rise in US crude and gasoline reserves, sparking worries about reduced demand in the biggest oil consumer globally.
Brent crude fell by 0.9%, trading at $68.20 per barrel, down from $68.84 at the previous session’s close. Similarly, the US benchmark West Texas Intermediate (WTI) decreased by about 1%, settling at $66.01 per barrel, compared to $66.71 in the prior session.
According to the US Energy Information Administration (EIA), commercial crude oil inventories rose by 3.8 million barrels last week, while market expectations had pointed to a draw of around 3.5 million barrels. Gasoline inventories also increased by approximately 4.2 million barrels.
Meanwhile, continued uncertainty surrounding US trade policy weighed on market sentiment. US President Donald Trump announced via his Truth Social account that a 20% tariff would be imposed on goods shipped from Vietnam to the US, with a 40% rate for products rerouted through other countries.
The US will have “total access” to Vietnam’s markets for trade, he said. “We will be able to sell our product into Vietnam at ZERO tariff.”
The reciprocal tariffs, announced by Trump on April 2 but postponed by 90 days a week later, proposed a 46% tariff on Vietnam. Investors are now focusing on the US nonfarm payrolls report due later Thursday. Analysts say the labor market data, particularly payroll figures, could help reduce uncertainty surrounding the Federal Reserve’s interest rate trajectory.
Given their potential to provide insight into the global economic outlook, the unemployment data are also expected to play a key role in determining the direction of oil prices.
Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, will likely agree to raise their output by 411,000 barrels per day at their meeting scheduled on Sunday. #Oil Prices Decline as U.S Crude Inventories Climb
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