Analysts surveyed by Reuters predicted an increase in crude oil inventories in the U.S. by 2.6 million barrels. A decrease in inventories may ease price declines due to rising global oil supply, which, combined with weak economic data from the U.S. and Germany, led to a drop of more than 2% in oil prices on Tuesday. In Germany, the economy contracted in the last quarter of 2024 compared to the previous quarter.
Oil markets remain cautious due to the influence of U.S. trade policy, especially the decision by President Donald Trump to impose tariffs against China and other trading partners, which could put pressure on the U.S. economy. Despite the recent U.S. sanctions against Iran, which could reduce the country's crude exports by up to 1 million barrels a day, OPEC+ members are preparing to increase supplies in the coming months, according to Commodity Analytics Context Rory Johnstone.
Meanwhile, the U.S. and Ukraine have reached agreements on terms for the mineral extraction project, which is key to enhancing Trump’s efforts to accelerate the end of the war in Ukraine, sources familiar with the situation told Reuters. Oil prices rose at the beginning of the trading session in Asia, recovering after falling to a minimum for two months during the previous session, when industry reports showed a decline in crude oil stocks in the U.S.
Brent crude futures fell 27 cents or 0.4% to $73.29 a barrel by 01:34 GMT, while U.S. West Texas Intermediate (WTI) futures added 25 cents or 0.4% to $69.18 a barrel. Market sources referred to data from the American Petroleum Institute (API), indicating a decrease in crude oil inventories in the U.S. by 640,000 barrels for the week ending February 21.
Brent crude closed at its lowest level since December 23, while WTI posted its weakest closing level since December 10. Official U.S. inventory data is expected later in the week. Economic data indicated that consumer confidence fell in February to its lowest level in three years, while inflation expectations rise over the next 12 months.
