West Texas Intermediate (WTI) crude oil, the US benchmark, rose to $67.40 per barrel during Thursday’s early Asian session. This increase follows a rally driven by tighter-than-expected US oil inventories. However, gains may be capped due to concerns over a potential US economic slowdown and the impact of tariffs on global economic growth.
US Crude Oil Inventories Rise
According to the US Energy Information Administration (EIA), crude oil stockpiles in the US increased by 1.448 million barrels last week, which was less than the market consensus of a 2.1 million barrel rise. Despite this increase, gasoline and diesel draws were larger than expected, indicating stronger demand and potentially supporting higher oil prices.
Economic Concerns and Tariffs
Despite the positive inventory data, fears of a US economic slowdown and the effects of President Trump’s tariffs on imports could limit further price increases. The tariffs are expected to increase costs for businesses, boost inflation, and erode consumer confidence, which could ultimately drag the WTI price down. Additionally, new tariffs on imported steel and aluminum, including those from major suppliers like Canada and Mexico, are set to take effect, further complicating the economic outlook.
