WTI crude oil futures attempted to rebound to $75 per barrel after six straight days of losses but remained over 3% lower for the week, marking the sharpest weekly decline since November.
Oil set for weekly drop on Trump’s price pressure
The downturn was primarily driven by President Trump’s call for lower oil prices. Speaking at the Davos forum on Thursday, Trump announced his intention to pressure Saudi Arabia and OPEC to reduce crude prices while simultaneously advancing measures to increase US production. Adding to market jitters, Trump threatened tariffs on China, Canada, and Mexico, stoking fears of slower global economic growth and weakened oil demand. These trade tensions, coupled with potential oversupply, weighed heavily on market sentiment.
EIA figures
On the supply side, data from the Energy Information Administration (EIA) provided a mixed picture. US crude inventories fell by 1 million barrels last week, marking a ninth consecutive weekly decline and dipping below the five-year seasonal average. Distillate fuel stocks also registered a notable decrease, signaling strong demand for heating and industrial use. However, gasoline inventories continued to rise, raising concerns about potential imbalances in refined product markets.
Oil market remains volatile
This complex interplay of geopolitical factors, trade policy uncertainties, and mixed supply signals has kept oil markets volatile, with traders closely monitoring developments that could impact both supply and demand dynamics in the coming weeks.
