Oil Prices React to Trade Tensions and Inventory Reports

In a recent turn of events, oil prices have experienced a downturn as the market closely monitors the escalating trade disputes between the United States and China. The imposition of a 10% tariff on US oil by Beijing, alongside additional levies on coal and liquified natural gas, has stirred concerns among investors. Despite ongoing bilateral discussions, the full impact of these tariffs remains uncertain.

Adding to the market's unease, the latest US crude oil inventories report revealed a significant increase of 5.02 million barrels in the week ending January 31. This development has further pressured oil prices downward.

Market Reaction

West Texas Intermediate (WTI) for March deliveries saw a 1.16% drop, trading at $71.90 per barrel at 7:02 am ET. Similarly, Brent crude for April's settlements decreased by 1.13%, selling for $75.35 per barrel a minute later.