Oil prices ticked higher in Asian trading on Thursday, up slightly from multi-week lows as Saudi Aramco, the world's leading oil exporter, announced a significant increase in March oil prices for Asian buyers.
By 3:30 pm AEDT (4:30 am GMT) Brent crude futures rose $0.08 or 0.1% to US$74.69 per barrel, while U.S. West Texas Intermediate crude increased $0.13 or 0.2% to $70.87 per barrel.
This modest recovery follows a more than 2% drop in oil prices on Wednesday, after data from the Energy Information Administration (EIA) showed a large build-up in U.S. crude and gasoline stockpiles, indicating weaker demand.
Saudi Aramco's decision to raise prices for March delivery comes amid rising demand from China and India, as U.S. sanctions continue to disrupt Russian oil supply.
The U.S. imposed new, aggressive sanctions on Russia's oil trade last month, targeting "shadow vessels" suspected of evading trade blockades.
The oil market is also grappling with the implications of a new round of U.S.-China trade tariffs, including duties on energy products.
On Tuesday, the U.S. imposed 10% tariffs on Chinese goods, though these fell short of President Donald Trump's campaign threats.
China retaliated with its own tariffs on U.S. oil, liquefied natural gas, and coal imports, but the impact is expected to be limited due to China's relatively modest purchases from the U.S.
