Oil prices were little changed on Thursday, as concerns over escalating tariff wars and their potential impact on global economic growth outweighed optimism from a larger-than-expected decline in United States gasoline stocks.
By 3:10 pm AEDT (4:10 am GMT), Brent crude futures remained flat at $70.95 per barrel, while US West Texas Intermediate (WTI) crude edged down 0.1% to $67.63 per barrel.
Both benchmarks rallied about 2% on Wednesday, supported by tighter-than-expected U.S. fuel inventories.
Data from the Energy Information Administration (EIA) on Wednesday revealed that U.S. crude stockpiles rose by 1.4 million barrels, below the expected 2 million-barrel increase.
Meanwhile, gasoline inventories dropped 5.7 million barrels, far exceeding the 2 million-barrel draw expected. Distillate stockpiles also saw a sharper-than-anticipated decline.
The EIA also reported that crude inventories in the U.S. Strategic Petroleum Reserve (SPR) climbed to their highest level since 2022.
Markets remain cautious as trade tensions between the U.S. and its partners escalate. On Wednesday, Donald Trump threatened new tariffs on European Union goods, prompting warnings of retaliation from major trading partners.
The trade dispute has unsettled investors, businesses, and consumers, raising concerns that prolonged tensions could slow economic growth and energy demand.
The Organisation of the Petroleum Exporting Countries (OPEC) reported that Kazakhstan led a significant increase in crude output among OPEC+ members in February.
OPEC's monthly report revealed that OPEC+ - which includes Russia and other allies - raised production by 363,000 barrels per day (bpd) to 41.01 million bpd in February.
Despite the production increase, OPEC maintained its forecast for relatively strong global oil demand growth in 2025.
"Trade concerns are expected to contribute to volatility as trade policies continue to be unveiled. However, the global economy is expected to adjust. Price pressures may weigh on global growth but are unlikely to disrupt overall growth momentum, which remains supported by resilient consumer demand and strong output in major emerging economies," OPEC stated.
