WTI Crude Trades Near $72 Amid US-China Trade Uncertainty by Amit Gupta, Kedia Advisory
WTI crude oil prices remain under pressure, trading near $72.20 per barrel in the Asian session on Wednesday. Market sentiment remains cautious amid rising US crude inventories and escalating trade tensions between the US and China. China imposed new tariffs on US energy products, including a 10% levy on crude oil. However, oil prices found some support from supply concerns as the US intensified economic pressure on Iran, aiming to reduce its oil exports to zero. Meanwhile, API data showed US crude stockpiles increased by 5.025 million barrels last week, exceeding expectations. OPEC+ reaffirmed plans to raise oil production from April, adding to market uncertainty.
Key Highlights
* WTI trades near $72.20, pressured by US-China trade tensions and rising inventories.
* China imposed a 10% tariff on US crude oil imports.
* US API crude stockpiles surged by 5.025 million barrels, exceeding forecasts.
* Trump reinstated maximum pressure on Iran, aiming to cut oil exports to zero.
* OPEC+ reaffirmed production hike plans, removing the EIA from its monitoring list.
West Texas Intermediate (WTI) crude oil prices continued to trade lower for the third consecutive session, hovering near $72.20 per barrel in the Asian trading hours on Wednesday. The market remains cautious as traders assess the impact of escalating trade tensions between the US and China. China’s latest move to impose a 10% tariff on US crude oil, along with additional duties on LNG and other imports, weighed on market sentiment, raising concerns about demand.
Despite the downside pressure, oil prices found some support from heightened geopolitical risks. US President Donald Trump reinstated his “maximum pressure” campaign on Iran, aiming to cut the country’s oil exports to zero. This could remove approximately 1.5 million barrels per day from global supply, keeping crude markets on edge.
Adding to the bearish sentiment, the American Petroleum Institute (API) reported a significant rise in US crude inventories, with stockpiles increasing by 5.025 million barrels last week. This marked the third consecutive week of inventory growth and exceeded market expectations of a 3.17 million barrel build, signaling weaker demand.
Meanwhile, OPEC+ reaffirmed its plan to gradually increase oil production from April. The group also decided to remove the US Energy Information Administration (EIA) from its list of monitoring sources, reflecting a shift in how production data is assessed. These developments further cloud the outlook for crude prices, keeping volatility high in the oil market.
Finally
WTI crude prices face downward pressure from US-China trade tensions and rising inventories, while Iran-related supply concerns provide limited support. Key resistance is seen near $73, with support at $71.
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