- In early Asian sessions on Wednesday, WTI Priz traded nearly $67.65 in the negative area.
- OPEC+ said plans to increase oil production will continue from April.
- According to the API, US crude oil reserves fell by 14.55 million barrels last week.
- Trump’s tariff threat could undermine WTI’s prices.
Crude Oil Prices Face Selling Pressure
West Texas Intermediate (WTI), the U.S. crude oil benchmark, hovers around $67.65 in early Asian trading on Wednesday. Market sentiment remains bearish as geopolitical tensions, OPEC+ production adjustments, and U.S. tariff policies exert downward pressure on oil prices.
OPEC+ Confirms Production Increase
On Monday, OPEC+—a coalition of the Organization of the Petroleum Exporting Countries and its allies, including Russia—announced plans to increase oil production starting in April. This decision follows previous supply cuts aimed at stabilizing the global market.
Bjarne Schieldrop, Chief Commodities Analyst at SEB, remarked, “The shift in OPEC’s approach suggests they are prioritizing political factors over pricing. These political moves may be linked to negotiations involving Donald Trump.”
U.S. Crude Inventories Drop More Than Expected
The latest data from the American Petroleum Institute (API) revealed a larger-than-anticipated decline in U.S. crude oil inventories. For the week ending February 28, stockpiles fell by 1.455 million barrels, exceeding both the previous week’s drop of 640,000 barrels and the market forecast of a 300,000-barrel decline.
U.S. Tariffs Raise Economic Concerns
President Donald Trump confirmed that tariffs on Canada and Mexico took effect on Tuesday, bringing forward the enforcement date from April to March. Additionally, tariffs on Chinese imports were raised from 10% to 20%. Analysts warn that these measures could slow economic growth and reduce energy demand, contributing to WTI’s continued decline.
