Oil prices traded lower on Thursday after an industry report indicated a larger-than-expected build in U.S. crude stockpiles, while concerns over trade tariffs further pressured sentiment.
By 4:00 pm AEDT (5:00 am GMT) Brent crude futures fell $0.28 or 0.4% to US$75.76 per barrel, while U.S. West Texas Intermediate (WTI) crude for April dropped $0.36 or 0.5% to $71.89 per barrel.
Oil prices had held near a one-week high on Wednesday but retreated as fresh data signaled growing U.S. inventories and potential trade disruptions.
The American Petroleum Institute (API) estimated that U.S. crude stockpiles increased by 3.34 million barrels for the week ending February 14, exceeding expectations of a 2.2-million-barrel rise.
Investor sentiment was further dampened by new import tariffs announced by the Trump administration, which could raise costs for consumer goods, weaken the global economy, and ultimately reduce fuel demand.
Despite the downward pressure, concerns over global supply disruptions helped limit losses. Russia reported that a Ukrainian drone attack on a pumping station had reduced Caspian Pipeline Consortium (CPC) oil flows by 30% - 40% on Tuesday.
Analysts at ANZ noted: "The uncertainty over Trump's trade and foreign policies are also increasing the uncertainty over the supply outlook. Adding to this were reports that as much as 30% of oil exports from a major Kazakh pipeline to the Black Sea may be halted after a Ukrainian drone attacked a pumping station in Russia."
Official U.S. crude inventory data from the Energy Information Administration (EIA) is due on Thursday, following a one-day delay due to a U.S. holiday.
