Oil prices remained stable on Thursday, recovering slightly from a multi-year low, though Brent crude remained below $70 amid pressures from trade tariffs between the U.S., Canada, Mexico, and China, as well as OPEC+ plans to raise production.
Brent futures were up 28 cents, or 0.4%, at $69.58 a barrel by 0957 GMT, while U.S. West Texas Intermediate (WTI) crude gained 32 cents, or 0.5%, to $66.63.
Prices had dropped significantly earlier in the week, with Brent falling as low as $68.33 on Wednesday, its weakest level since December 2021, due to concerns over tariffs on Canadian and Mexican goods, including energy imports, and a decision by major producers to raise output quotas. Oil prices began to recover after the U.S. announced it would exempt automakers from the 25% tariffs, and discussions indicated that U.S. President Donald Trump could eliminate the 10% tariff on Canadian energy imports, such as crude oil and gasoline, if they comply with existing trade agreements.
The OPEC+ group, including the Organization of the Petroleum Exporting Countries and allies like Russia, decided on Monday to increase output quotas for the first time since 2022, further pressuring oil prices. On Wednesday, a larger-than-expected rise in U.S. crude inventories exacerbated the decline.
U.S. crude stockpiles increased, buoyed by seasonal refinery maintenance, while gasoline and distillate inventories dropped due to higher exports, according to the Energy Information Administration.
Signs of weakening demand for oil in the U.S. were also evident, with waterborne crude oil imports to the U.S. reaching a four-year low in February. This was driven by a decline in Canadian barrels shipped to the East Coast, largely due to refinery maintenance at the largest plant in the region.
Additionally, tariffs on U.S. imports of Mexican crude continue to affect trade flows, though this is a smaller supply stream compared to Canadian crude.
In China, officials have signalled that more economic stimulus may be implemented if growth slows, aiming to support consumption and mitigate the effects of the escalating trade conflict with the U.S.
