Oil prices edged up in Asian trading on Thursday, slightly recovering from a two-month low in the previous session, as investors assessed the impact of fresh tariff threats from President Donald Trump and analyzed a mixed U.S. inventory report.
Brent Oil Futures rose 0.3% to $72.77 per barrel as of 21:55 ET (02:55 GMT), while Crude Oil WTI Futures expiring in March also gained 0.4% to $68.53 per barrel.
US oil market sees crude draw, refined product surplus - EIA
The U.S. Energy Information Administration (EIA) released its weekly report on Wednesday, presenting a nuanced picture of the current oil market that reflects a complex interplay between supply and demand factors.
For the week ending February 21, {{8849|U.S. crcrude oil inventories decreased by 2.3 million barrels, in contrast with analysts' expectations of a 2.6 million barrel increase, suggesting a tighter supply scenario.
Concurrently, refinery inputs rose by 317,000 barrels per day, with refineries operating at 86.5% capacity, indicating an uptick in refining activity.
Despite the reduction in crude inventories, the report also highlighted an unexpected build in refined product stocks. Gasoline inventories increased by 400,000 barrels to 248.3 million barrels, while distillate fuel stocks saw a significant rise of 3.9 million barrels, reaching 120.5 million barrels.
These increases suggest that while refineries are processing more crude, the demand for end products like gasoline and distillates may not be keeping pace, leading to higher stockpiles.
The mixed data presents a complex scenario for investors. Market reactions have been cautious as oil prices have recently experienced volatility, with concerns over global economic conditions and geopolitical developments.
Trump revokes Chevron 's license to operate in Venezuela
President Donald Trump has revoked Chevron Corp's (NYSE:CVX) license to operate in Venezuela, citing President Nicolás Maduro's failure to advance electoral reforms and expedite the return of deported migrants.
This decision, effective March 1, 2025, halts Chevron's export of approximately 240,000 barrels per day of Venezuelan crude, over a quarter of the country's oil output.
The move has led to a rise in oil prices as markets anticipate tighter crude supplies.
Trump's tariff threats, potential Russia-Ukraine peace talks cap gains
President Donald Trump reaffirmed plans to impose tariffs on energy imports from Mexico and Canada, with Canadian products facing a 10% duty and Mexican imports a 25% tariff.
While the implementation date remains uncertain, the move has added volatility to oil markets. He also threatened tariffs on European Union goods, heightening investor concerns.
Moreover, Trump's recent efforts to mediate peace talks between Russia and Ukraine have introduced downward pressure on oil prices.
The potential resolution of the conflict raises expectations of increased Russian oil exports, which could alleviate supply concerns and lead to a decrease in prices.
