Oil Prices Fall, European Gas Ticks Up Amidst U.S Tariff Threats
Brent crude oil futures fell toward $77 per barrel on Wednesday as traders assessed the impact of potential US tariffs on Canada and other oil suppliers, alongside concerns over rising stockpiles.
WTI crude oil futures fell below $73.5 per barrel on Wednesday as traders assessed the impact of potential US tariffs on Canada and other oil suppliers, alongside concerns over rising stockpiles.
President Trump’s plan to impose 25% tariffs on Canada and Mexico, set to begin on February 1, added pressure, with Canada being a major US crude supplier. The threat weakened Canadian oil prices, and US stockpiles rose by 2.86 million barrels, marking a possible turnaround after weeks of decline.
Additionally, easing supply worries from Libya and the outlook for OPEC+ production decisions contributed to the broader market pullback.
US crude stocks increased for the first time in ten weeks, along with a rise in gasoline inventories, while distillate stocks fell during the week ending January 24, according to the Energy Information Administration.
Crude inventories grew by 3.463 million barrels, exceeding market expectations of a 3.2 million-barrel build, marking the first increase after nine consecutive weeks of declines.
Stocks at the Cushing, Oklahoma, delivery hub also rose by 0.326 million barrels. Gasoline stocks climbed by 2.957 million barrels, surpassing the expected 1.5 million-barrel increase.
However, distillate inventories, which include diesel and heating oil, fell by 4.994 million barrels, exceeding the anticipated 2.1 million-barrel decline. Meanwhile, net US crude imports rose by 0.532 million barrels per day.
European natural gas futures climbed toward €50 per megawatt-hour, approaching their highest level in four weeks, driven by colder weather that boosted demand and disrupted supply due to Norwegian gas outages.
Additionally, a predicted decline in wind power generation, which typically raises the need for gas-fired power, contributed to the price rise.
For the latter half of this week, forecasts predict lower wind speeds and temperatures returning to normal, with light to moderate frost at night. The following week is expected to be calm and dry, with temperatures slightly below average.
Outages at Norway’s Gullfaks, Troll, and Aasgard fields are restricting supply to Europe, with Norwegian gas nominations dropping to 313 million cubic meters on Wednesday, a 5 mcm decrease from the previous day.
Meanwhile, gas storage in Europe stands at 55.46% full, down from 71.79% at the same time last year, and depletion is expected to accelerate in the coming days. #Oil Prices Fall, European Gas Ticks Up Amidst U.S Tariff Threats BIPC Sues NDIC, One Other Over Alleged Illegal Sale of Shares
