Oil prices edged up on Thursday, showing a slight recovery from a two-month low reached in the previous session, as investors evaluate the effects of new tariff threats from President Donald Trump and analyze a mixed U.S. inventory report. Brent Oil Futures increased by 0.3 percent to $72.77 per barrel as of 21:55 ET (02:55 GMT), while Crude Oil WTI Futures, set to expire in March, also saw a gain of 0.4 percent, reaching $68.53 per barrel.
Us oil market sees crude draw, refined product surplus – EIA
The U.S. Energy Information Administration (EIA) published its weekly report on Wednesday, providing a nuanced view of the current oil market that demonstrates a complex interplay between supply and demand factors. For the week ending February 21, U.S. crude oil inventories decreased by 2.3 million barrels, contrary to 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 percent capacity, indicating an uptick in refining activity.
Despite the reduction in crude inventories, the report also pointed out an unexpected build in refined product stocks. Gasoline inventories rose by 400,000 barrels to 248.3 million barrels, while distillate fuel stocks experienced a significant increase of 3.9 million barrels, reaching 120.5 million barrels. These increases indicate that while refineries are processing more crude, the demand for end products such as gasoline and distillates may not be keeping pace, resulting in higher stockpiles.
The mixed data presents a complex scenario for investors. Market reactions have been cautious as oil prices rise amid recent volatility, with concerns regarding 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 implement electoral reforms and expedite the return of deported migrants. This decision, effective March 1, 2025, ceases Chevron’s export of approximately 240,000 barrels per day of Venezuelan crude, which accounts for over a quarter of the country’s oil output. The move has contributed to an increase in oil prices as markets anticipate tighter crude supplies.
Trump’s tariff threats, potential Russia-Ukraine peace talks cap gains
President Donald Trump reaffirmed intentions to impose tariffs on energy imports from Mexico and Canada, with Canadian products facing a 10 percent duty and Mexican imports a 25 percent tariff. While the implementation date remains uncertain, this action has added volatility to the oil markets. He also threatened tariffs on European Union goods, raising investor concerns further. Moreover, Trump’s recent attempts 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.
