Oil prices sees slight recovery after OPEC’s fresh output policy

Oil prices showed slight recovery Wednesday after previous-day lows, but remained vulnerable due to planned OPEC+ production increases and U.S. tariff concerns.

Brent crude rose marginally to $71.10 per barrel, while WTI crude dipped slightly to $68.02. These fluctuations followed significant drops influenced by fears that U.S. tariffs on Canada, Mexico, and China, along with retaliatory measures, would dampen economic growth and fuel demand.

OPEC+ announced a modest 138,000 barrel-per-day output increase starting in April, the first step in unwinding nearly 6 million barrels of cuts implemented since 2022.  

The implementation of new and increased U.S. tariffs, including those on Canadian and Mexican imports, has fueled concerns about economic slowdown. Economists warn that these trade actions could lead to job losses, slower growth, and higher prices, ultimately reducing fuel consumption in the U.S., the world’s largest oil consumer.  

Additionally, the U.S. ended Chevron’s license to operate in Venezuela, adding further uncertainty.  

Supporting prices somewhat, preliminary data from the American Petroleum Institute indicated a 1.46 million barrel drop in U.S. crude inventories last week. Official U.S. stockpile data is expected later Wednesday.