Although crude oil futures prices fell slightly in Thursday morning trading compared to yesterday, they have reached their highest level in four weeks due to increasing demand and concerns about a decline in global supply.
According to Ashura News, quoted by Mehr reporter, at the time of writing this report, the price of US WTI crude oil has reached about $69.40 per barrel and North Sea Brent crude oil has reached $73.60 per barrel, while these two had ended their transactions yesterday evening at prices of $69.65 and $73.79, respectively. It is noteworthy that these two have been affected by the report of a significant decrease in US crude oil reserves.
US government data shows that the country's crude oil reserves decreased by 3.34 million barrels last week, the largest drop since December 2022, and gasoline stocks also had a downward trend.
Factors pressuring global supply
US sanctions against Iran and Venezuela, as well as the announcement of new tariffs on oil imports from these countries, have intensified concerns about disruptions in the supply chain. India’s Reliance Industries, the world’s largest refiner, will stop importing oil from Venezuela after Trump announced tariffs.
Impact of auto tariffs on oil demand
Traders are also assessing the impact of the Trump administration’s 25% tariffs on imported cars. The tariffs could also slow the transition to cleaner vehicles as demand for fossil fuels falls.
Slight growth in US oil activity
US oil and gas activity improved slightly in the first quarter of 2023, according to a Dallas Federal Reserve survey, but energy industry executives are pessimistic about the future. The pessimism stems from uncertainty about political developments, trade tensions and long-term trends in renewable energy.
The oil market is likely to experience significant volatility in the near term, affected by the balance between demand and supply factors.
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