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Oil prices rebounded slightly in Asian trading on Thursday, recovering from a two-month low as investors analyzed President Donald Trump’s fresh tariff threats and a mixed U.S. inventory report.
At 21:55 ET (02:55 GMT):
- Brent Oil Futures rose 0.3% to $72.77 per barrel
- Crude Oil WTI Futures (March expiry) gained 0.4% to $68.53 per barrel
U.S. Oil Market: Crude Draw vs. Refined Product Surplus – EIA Report
The U.S. Energy Information Administration (EIA) released its weekly oil market report on Wednesday, painting a mixed picture of the supply-demand balance.
Key takeaways for the week ending February 21:
- U.S. crude oil inventories fell by 2.3 million barrels, surprising analysts who had expected a 2.6 million barrel increase. This signals a tighter supply environment.
- Refinery inputs increased by 317,000 barrels per day, with refinery utilization at 86.5%, indicating higher refining activity.
- Gasoline inventories unexpectedly rose by 400,000 barrels to 248.3 million barrels, while distillate fuel stocks surged by 3.9 million barrels to 120.5 million barrels.
The buildup in refined product stocks suggests that while refineries are processing more crude, demand for gasoline and distillates may be lagging, leading to higher inventories.
Trump Revokes Chevron’s License in Venezuela, Raising Supply Concerns
President Donald Trump announced the revocation of Chevron Corp’s (NYSE: CVX) license to operate in Venezuela, citing President Nicolás Maduro’s failure to enact electoral reforms and facilitate the return of deported migrants.
Key Implications:
- Effective March 1, 2025, Chevron will no longer be able to export approximately 240,000 barrels per day of Venezuelan crude, which accounts for over 25% of the country’s total output.
- The decision has contributed to oil price gains, as markets anticipate a tighter crude supply outlook.
While the market remains volatile, geopolitical risks and inventory dynamics will continue to shape oil price movements in the near term.
