06 Feb 2025

The price of West Texas Intermediate (WTI) found support as Saudi Aramco increased prices for its Asian customers in response to growing demand and ongoing supply disruptions.

The EIA Crude Oil Stocks Change report indicated an increase of 8.664 million barrels for the previous week, significantly higher than the anticipated rise of 2.6 million barrels.

Additionally, China's tariffs on American crude oil have sparked worries regarding a potential decline in global demand.

West Texas Intermediate (WTI) Oil price holds modest gains after three consecutive days of losses, trading around $71.10 per barrel during European trading hours on Thursday. This rebound in CRUDE PRICE  comes after Saudi Arabia’s state Oil giant, Aramco, raised prices for Asian buyers.

Aramco's recent price increase was influenced by heightened demand from China and India, coupled with disruptions in Russian supply resulting from US sanctions. Additional supply uncertainties loom as US President Donald Trump has renewed efforts to eliminate Iran's oil exports, which could potentially remove up to 1.5 million barrels per day from the global market.

On Wednesday, oil prices experienced a decline of over 2% as a significant rise in US crude and gasoline inventories indicated a decrease in demand. US crude stockpiles rose by 8.664 million barrels for the week ending January 31, 2025, marking the largest increase in nearly a year and surpassing market predictions of a 2.6 million-barrel rise. In contrast, distillate inventories, which encompass diesel and heating oil, fell by 5.471 million barrels, against an anticipated reduction of 1.5 million barrels.

Compounding the market's challenges, escalating US-China trade tensions have intensified, with China implementing tariffs on American coal, LNG, and crude oil, raising concerns about diminished global demand. Furthermore, these retaliatory actions may result in a decrease in US oil exports in 2025, marking the first decline since the onset of the COVID-19 pandemic, following a period of stagnant growth last year.