Oil Futures Climb Ahead of EIA Report

Oil futures experienced a notable increase on Wednesday, as traders awaited the latest oil inventory report from the Energy Information Administration (EIA). This anticipation comes after the American Petroleum Institute (API) reported a significant drop in US crude oil inventories, which fell by 4.6 million barrels last week, exceeding the expected decrease of 2.5 million barrels.

Trump's Tariffs on Venezuelan Oil Imports

Adding to the market's volatility, former President Trump signed an order imposing a 25% tariff on imports from countries purchasing Venezuelan oil. This move could potentially disrupt oil flows to major refiners in China, India, and Spain, further straining global supply chains.

Market Reaction

West Texas Intermediate (WTI) for May deliveries saw a 1.45% increase, trading at $70.00 per barrel, while Brent for May's settlements rose by 1.29% to $73.96 per barrel, reflecting the market's nervousness ahead of the EIA's report.