West Texas Intermediate (WTI) crude oil continued its upward momentum on Thursday, trading around $67.40 per barrel during the early Asian session. The rally is fueled by tighter-than-expected U.S. oil inventories, but concerns over a potential economic slowdown and new trade tariffs could limit further gains.
Oil Inventories Show Smaller-Than-Expected Build
Data from the U.S. Energy Information Administration (EIA) showed that crude oil stockpiles rose by 1.448 million barrels for the week ending March 7, significantly lower than the previous week’s increase of 3.614 million barrels. The figure also fell short of market expectations, which had forecast a 2.1 million-barrel build.
Josh Young, Chief Investment Officer at Bison Interests, highlighted the bullish implications of the report: “This week, the oil build was smaller than expected, and gasoline and diesel draws were larger than anticipated. This evidences stronger demand and could see oil prices rise as a result.”
Tariff Concerns and Economic Uncertainty Weigh on Outlook
Despite the positive inventory data, WTI’s upside may be capped by mounting fears of a U.S. economic slowdown and the impact of trade tariffs on global growth. U.S. President Donald Trump’s administration confirmed that fresh 25% tariffs on all imported steel and aluminum took effect on Wednesday, including imports from key suppliers like Canada and Mexico.
Economists warn that these tariffs could raise costs for businesses, fuel inflation, and dampen consumer confidence—factors that could weigh on economic growth and, in turn, crude oil demand.
Market Focus on Economic Data and Tariff Impact
Investors are closely watching the broader economic landscape and potential policy responses. If economic concerns intensify, crude prices could face renewed pressure despite current supply-side support.
