West Texas Intermediate (WTI) crude oil is trading around $69.70 early Friday in the Asian session, marking a one-month high as ongoing US sanctions and tariffs on Venezuelan oil continue to support prices.
The recent upward momentum in WTI prices follows the US administration’s announcement of a 25% secondary tariff on countries importing Venezuelan oil or gas, effective April 2. Venezuela has historically been a significant supplier of oil to the US, with trade data showing that the US purchased $5.6 billion worth of Venezuelan oil and gas in 2024, making it one of the top foreign suppliers of crude.
Supporting this price rise, the US Energy Information Administration (EIA) reported a decline in crude oil inventories. For the week ending March 21, US stockpiles fell by 3.341 million barrels, contrasting with the prior week’s increase of 1.745 million barrels. This drop in stockpiles exceeded market expectations, which had anticipated a decrease of 1.6 million barrels.
However, looming concerns over President Donald Trump’s new tariffs on automobiles may weigh on oil demand, potentially dampening WTI prices. On Wednesday, Trump unveiled a 25% tariff on imported cars and light trucks, set to take effect on April 2, with tariffs on auto parts following on May 3. Phil Flynn, senior analyst at Price Futures Group, highlighted that “the biggest headwind for oil right now is the concern about tariffs, and tariffs might slow demand.”
