Business a.m.
Global oil prices eased on Wednesday following a build-up in U.S. crude inventories, while investors maintained a cautious watch over the recently imposed U.S. tariffs on Canadian and Mexican oil imports.
The downward trend in oil prices continued on the third day of the week, as Brent crude futures slipped by 44 cents, or 0.57 percent, to trade at $77.05 per barrel, while U.S. crude futures also declined by 41 cents, or 0.56 percent, to trade at $73.36 per barrel.
President Donald Trump persisted in his demand for OPEC to reduce oil prices, asserting that lower oil prices would hurt Russia’s revenue and potentially put an end to the ongoing conflict in Ukraine.
However, OPEC has announced that it will commence a gradual increase in production from April, reversing the deep output cuts that had been implemented over the past two years.
Despite being a key supplier of crude oil to the United States, Canada has been affected by the recent tariffs on oil imports imposed by the Trump administration, adding to the uncertainty already present in the global oil market.
According to data from the U.S. Energy Information Administration (EIA), Canada supplied approximately 3.9 million barrels per day (bpd) of oil to the U.S. in 2023, accounting for nearly half of all U.S. oil imports for the year.
In its latest weekly report, the American Petroleum Institute (API) revealed that crude oil and gasoline stockpiles in the United States rose last week, while distillate inventories declined.
The upcoming OPEC+ Joint Ministerial Monitoring Committee meeting, scheduled for Monday, is set to be a key event on the radar of market participants, given the current volatile political and economic landscape, as stated by Tamas Varga, an analyst at oil brokerage firm PVM.
Saudi Arabia’s Energy Minister, along with several other OPEC+ ministers, have held talks following Trump’s plea for lower oil prices, as the group prepares to meet next week in Vienna, according to official announcements and industry sources.
Trump’s ultimate goal, according to Varga, is to pressure Russia, which is a key member of the OPEC+ coalition alongside Saudi Arabia, into negotiating a peaceful end to its military conflict with Ukraine.
The strategy hinges on the implementation of U.S. trade policy, including increased domestic oil production, which would result in lower oil prices, ultimately reducing inflationary pressures and the cost of gasoline for American consumers.
