Economic Insights – Baghdad
Oil prices experienced an uptick today, Thursday, in response to a significant decline in U.S. gasoline stocks. However, these gains were tempered by apprehensions surrounding the implications of escalating trade wars on global economic growth.
As of 03:10 GMT, Brent crude futures increased by nine cents, reaching $71.04 per barrel, while U.S. West Texas Intermediate crude futures rose by two cents to $67.71 per barrel.
The U.S. Energy Information Administration’s latest data indicated that crude inventories in the United States saw an increase of 1.4 million barrels during the most recent week.
Meanwhile, gasoline stocks decreased by 5.7 million barrels, alongside a more than anticipated decline in distillation products.
The same report revealed that crude stocks in the U.S. strategic petroleum reserves have surged to their highest level since 2022.
Hiroyuki Kikokawa, Chief Strategist at Nissan Securities and Investment, noted, “The decline in gasoline stocks has heightened expectations for increased seasonal demand in the spring; however, concerns regarding the global economic ramifications of trade duties are weighing heavily on the market.”
He further commented, “With both strong and weak factors influencing the market simultaneously, achieving a clear directional movement has become increasingly challenging.”
Yesterday, U.S. President Donald Trump threatened to escalate the ongoing trade war by imposing additional tariffs on European Union goods, prompting major U.S. trade partners to signal potential retaliation against the trade barriers already established by the President.
This increased focus on tariffs has eroded confidence among investors, consumers, and businesses, subsequently raising fears of a recession in the United States.
In related news, OPEC’s monthly report indicated that OPEC+, which includes OPEC along with Russia and other allies, raised its production in February by 363,000 barrels per day, totaling 41.01 million barrels per day.
The group maintained its optimistic outlook for robust growth in global oil demand through 2025.
To stay updated with the latest economic news, subscribe to our channel on Tilekram.
