06 Mar 2025

WTI prices have experienced a decline as negative market sentiment continues, driven by apprehensions regarding OPEC+’s decision to increase production. The recent production boost of 138,000 barrels per day by OPEC+ represents its first increase since 2022. According to the latest EIA report, U.S. crude oil inventories rose by 3.614 million barrels for the week ending February 28. As a result, West Texas Intermediate (WTI) crude oil prices have extended their downward trend for the fifth consecutive day, trading at approximately $66.00 per barrel during European trading hours on Thursday. Nevertheless, crude oil prices received some support following remarks from a U.S. official indicating that President Donald Trump may contemplate lifting the 10% tariff on Canadian energy imports that adhere to trade agreements.

The Oil price faces challenges as market sentiment remained bearish amid concerns over OPEC+’s decision to increase output. The alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other partners, confirmed its plan to boost production in April. This move follows renewed pressure from President Trump on OPEC and Saudi Arabia to lower Oil prices. According to Reuters calculations, the production increase amounts to 138,000 barrels per day, marking the first rise from OPEC+ since 2022.

Market strategist Yeap Jun Rong of IG told Reuters, "The sharp dip in Oil prices below the key $70.00 level may prompt a slight breather in today's session, as technical conditions attempt to stabilize from oversold territory." However, he noted that "recovery momentum remains fragile, with unfavorable supply-demand dynamics weighing on bullish sentiment."

Meanwhile, data from the US Energy Information Administration (EIA) showed that crude inventories rose more than expected, reinforcing concerns about oversupply. The weekly report showed that US crude Oil stockpiles rose by 3.614 million barrels for the week ending February 28, reversing the previous week’s decline of 2.332 million barrels. This buildup exceeded market expectations, which had projected a decrease of 290,000 barrels.