Oil climbs from multi-year low, tariff concerns and rising supply weigh

Siyi Liu

Wed, Mar 5, 2025, 5:52 PM 3 min read

By Siyi Liu

SINGAPORE (Reuters) - Oil prices roseate connected Thursday aft dense sell-offs drove the marketplace to a multi-year low, nevertheless tariff uncertainties and a rising proviso outlook capped gains.

Brent futures were trading up 50 cents, oregon 0.72%, astatine $69.80 a tube by 0716 GMT, portion U.S. West Texas Intermediate crude (WTI) futures climbed 48 cents, oregon 0.72%, to $66.79 a barrel.

Brent plunged 6.5% successful the erstwhile 4 sessions, dropping to its lowest since December 2021 connected Wednesday, portion WTI fell 5.8% implicit the aforesaid play to its lowest since May 2023.

"The crisp dip successful lipid prices beneath the cardinal $70.00 level whitethorn punctual a flimsy breather successful today's session, arsenic method conditions effort to stabilise from oversold territory," said Yeap Jun Rong, marketplace strategist astatine trading level IG.

"However, betterment momentum remains fragile, with unfavourable supply-demand dynamics being a cardinal overhang for bullish sentiment," helium added.

Prices fell aft the U.S. enacted tariffs connected Canadian and Mexican goods, including vigor imports, astatine the aforesaid clip large producers decided to rise output quotas for the archetypal clip since 2022.

The diminution eased arsenic the U.S. said it volition exempt automakers from the 25% tariffs, raising optimism the interaction of the commercialized quality whitethorn beryllium mitigated.

Additionally, a root acquainted with the discussions said that U.S. President Donald Trump whitethorn destruct the 10% tariff connected Canadian vigor imports, specified arsenic crude lipid and gasoline, that comply with existing commercialized agreements.

"Trump’s commercialized measures are threatening to trim planetary vigor request and disrupt commercialized flows successful the planetary lipid market. This was exacerbated by a emergence successful U.S. inventory," Daniel Hynes, elder commodity strategist astatine ANZ, said successful a enactment connected Thursday.

Market sentiment remains bearish from the treble interaction of the tariffs and the determination by OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia to rise output.

Crude stockpiles successful the U.S., the world's biggest lipid consumer, roseate much than expected past week amid seasonal refinery maintenance, portion gasoline and distillate inventories fell owed to a hike successful exports, the Energy Information Administration said connected Wednesday.

Crude inventories roseate by 3.6 cardinal barrels to 433.8 cardinal barrels successful the week, the EIA said, acold exceeding analysts' expectations successful a Reuters canvass for a 341,000-barrel rise.

There are further signs of weakness successful American lipid demand, with U.S. waterborne crude lipid imports dropping to a four-year debased successful February, driven by a autumn successful Canadian barrels shipped to the East Coast, according to vessel tracking data, arsenic refinery maintenance, including a agelong turnaround astatine the largest works successful the region, quashed demand.