News Digest:

Oil prices remained firm after the US reported its largest weekly crude stockpile decline since December, indicating potential near-term supply tightness.

Brent Crude traded near $74 after closing 1.1% higher on Wednesday, while West Texas Intermediate (WTI) hovered just below $70. US crude inventories fell by 3.34 million barrels last week, marking the lowest level in a month. Gasoline stockpiles also dipped, according to government data.

Oil prices have been trending higher since early March, fueled by concerns over supply disruptions linked to US sanctions and tariffs targeting producers like Iran and Venezuela. This uncertainty has driven traders to purchase bullish oil options to hedge against potential price spikes.

“Economic concerns surrounding Trump’s advocacy for tariffs remain strong, posing a threat to future fuel demand,” said Priyanka Sachdeva, senior market analyst at Phillip Nova Pte in Singapore.

However, some major oil traders, including Trafigura Group and Gunvor Group, maintain a bearish outlook on crude prices for the rest of 2025. Rising supply from non-OPEC+ producers and a planned revival of idled OPEC+ output next month could weigh on prices. This production increase is the first in a series of scheduled hikes aimed at stabilizing the market.

End Notes

Source: https://finance.yahoo.com/news/oil-holds-gain-us-posts-233047175.html