Crude oil prices remained low after falling to their lowest point in nearly four years earlier this week. This drop followed the implementation of U.S. tariffs on Mexican and Canadian imports, which sparked a selloff in the market.
The mood in the oil markets was further dampened by reports that OPEC+ plans to partially ease its production cuts in April.
As of now, Brent crude was trading at $69.72 per barrel, and West Texas Intermediate stood at $66.72 per barrel, both showing slight increases from earlier in Asia.
UBS analyst Giovanni Staunovo noted that market concerns are growing. Traders fear that OPEC+ may be planning more monthly supply increases. However, OPEC+ has emphasized that it will only bring back production if the market can absorb it.
IG analyst Yeap Jun Rong told Reuters that the drop in oil prices below the $70 mark could lead to a temporary rebound, as technical indicators suggest the market is oversold. Still, the analyst warned that recovery remains uncertain due to weak supply-demand dynamics, which continue to limit positive market sentiment.
Adding to the downward pressure, the Energy Information Administration (EIA) reported a 3.6-million-barrel increase in U.S. crude oil inventories for the last week of February. While inventory levels of fuels showed declines, the market focused more on the crude oil inventory build.
Bloomberg also reported that crude oil prices have lost about 20% of their value since the beginning of the year. This drop follows President Trump’s trade policies, which have unsettled markets. In response, targeted countries have imposed their own tariffs, raising concerns about the future of global trade.
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