Oil Prices Rebound in Early Asian Trading
Oil prices saw an uptick in early Asian trading on Wednesday, marking a recovery from their lowest levels in two months recorded in the previous session. This increase follows data indicating a decline in US crude stocks for the week.
Brent crude futures rose by 27 cents, or 0.4%, reaching $73.29 per barrel by 01:34 GMT. Similarly, US West Texas Intermediate (WTI) crude futures climbed 25 cents, also a 0.4% increase, to stand at $69.18 per barrel.
Market sources cited figures from the American Petroleum Institute, reporting a reduction of 640,000 barrels in US crude stocks for the week ending February 21. Official data from the US government is expected to be released later today.
This report has helped alleviate some concerns surrounding the high global supply of oil, which, in combination with recent negative economic indicators from both the United States and Germany, contributed to a more than 2% rise in oil prices on Tuesday.
Brent crude was trading at its lowest closing price since December 23, while West Texas Intermediate crude had not seen such low levels since December 10.
The oil prices have been under pressure partly due to fears that US President Donald Trump’s tariff decisions regarding China and other trade partners could put additional strain on the US economy.
In a client memorandum, analysts at AN Z noted that despite the new US sanctions on Iran, concerns over dwindling oil supplies in the near term have eased.
Rorre Johnston, an analyst at Commune Contesty, remarked that while American political actions could potentially reduce Iranian crude oil exports by up to one million barrels per day, any shortfall in supply from Iran might be offset by OPEC+ members who are expected to increase their output in the upcoming months.
Market Overview: Price Movement
| Crude Type | Price Change | Current Price (per barrel) |
|---|---|---|
| Brent crude futures | +$0.27 (0.4%) | $73.29 |
| West Texas Intermediate crude | +$0.25 (0.4%) | $69.18 |
This recent trend highlights the ongoing volatility in the oil market as it navigates through geopolitical tensions and economic uncertainties.
