WTI crude oil is trading near $70.95 during the early Asian session. The price is experiencing upward pressure amid concerns over potential supply disruptions following threats of oil tariffs by former U.S. President Donald Trump against Russia, contingent on Moscow’s actions regarding the conflict in Ukraine. However, gains may be limited as markets anticipate reciprocal tariffs expected to be announced.
Trump’s statements included potential secondary tariffs on buyers of Russian oil and threats against Iran concerning its nuclear program, raising geopolitical risks that could impact global supply. Conversely, the prospect of reciprocal tariffs could exert downward pressure on WTI prices.
The American Petroleum Institute (API) reported a 6.037 million barrel increase in U.S. crude oil stockpiles for the week ending March 28. Year-to-date, crude oil inventories have risen by approximately 23 million barrels, according to calculations based on API data.
Market participants will be closely monitoring the upcoming OPEC+ ministerial committee meeting to assess potential policy adjustments. Reports indicate a planned output increase of 135,000 barrels per day for May, mirroring a similar increase implemented in April.
WTI Oil is a benchmark crude oil traded on international markets, known for its low gravity and sulfur content, making it easily refined. Its price is influenced by supply and demand dynamics, global economic conditions, geopolitical events, OPEC decisions, and the value of the U.S. dollar. Weekly inventory reports from the API and EIA provide insights into supply and demand, impacting price fluctuations. OPEC’s production quotas also significantly influence WTI Oil prices, with decisions to lower quotas typically tightening supply and increasing prices, while increased production has the opposite effect.
