Oil prices settle down as US stockpile grows, tariffs still in focus

Last Update: 2025-01-30 00:40:24 - Source: Shafaq News
Oil prices settle down as US stockpile grows, tariffs still in focus

Shafaq News/ Oil prices fell on Wednesday, with the U.S.benchmark settling at its lowest year to date, after domestic crude stockpilesin the world's top petroleum producer and consumer rose more than expected lastweek.

Brent crude futures settled down 91 cents, or 1.2%, at$76.58 a barrel. U.S. crude futures fell $1.15, or 1.6%, to $72.62, theirlowest settlement price so far this year.

Crude oil stockpiles in the U.S. rose by 3.46 millionbarrels last week as refiner intake slumped for a third consecutive week, datafrom the Energy Information Administration showed.

Analysts polled by Reuters had expected a3.19-million-barrel increase.

The White House on Tuesday reaffirmed President DonaldTrump's plan to impose 25% tariffs on imports from Canada and Mexico from Feb.1. Near-term oil trade should remain choppy as investors digest the tariffthreats, sanctions on Russian energy flows, and economic growth concerns in topconsuming nations, UBS analyst Giovanni Staunovo wrote to clients on Wednesday.

"Considering the many prevailing uncertainties, wethink a prudent approach is still warranted," Staunovo wrote. "Whilewe expect prices to stay supported at current levels, news flow related toTrump is likely to drive volatility in the near term."

The U.S. Federal Reserve held interest rates steady onWednesday. The Fed gave little insight on when it plans to lower borrowingcosts, which could boost economic activity and oil demand.

Traders are also looking ahead to an OPEC+ ministerialmeeting scheduled for Feb. 3, with the group's plan to increase supply fromApril in focus.

Trump last week called on OPEC+ to lower oil prices. Thegroup has yet to respond, but delegates said policy changes are unlikely at theFebruary meeting.

Supply concerns have eased after Libya's National Oil Corpsaid on Tuesday that export activity was running normally after it held talkswith protesters who had demanded a halt to loadings at one of the country'smain oil ports.

"Libyan supplies will remain a risk as the countryremains engaged in a civil war, but for now, the risk has been mitigatedtemporarily," StoneX analyst Alex Hodes said.

(Reuters)