International oil prices surged as U.S. weekly oil reserves decreased more than expected.
The U.S. Energy Information Administration (EIA) reported a 3.341 million barrel decrease in oil inventories for the week ending on March 21, significantly exceeding market projections of a 1 million barrel reduction.
This substantial drop in U.S. oil reserves comes amid growing concerns over potential supply disruptions fueled by Trump’s aggressive tariff policies. These include a 25% tariff on Canadian and Mexican oil and countries importing Venezuelan crude.
In a quarterly survey by the Dallas Federal Reserve, the U.S. shale oil industry criticized Trump’s tariff policies, arguing they are stifling production growth.
Furthermore, Trump’s Middle East strategy has intensified geopolitical instability in the region, known as the global oil reserve, adding pressure on oil prices.
Brent crude, the international oil price benchmark, has risen for six consecutive trading days since March 19. West Texas Intermediate (WTI), the U.S. benchmark, rebounded after a one-day dip and has maintained an upward trajectory since March 19, except for March 25.
Brent crude for the May delivery jumped $0.77 (1.05%) to settle at $73.79 per barrel. Since March 19, Brent has soared by $2.72 per barrel, representing a 3.8% increase.
WTI for May delivery closed at $69.65 per barrel, up $0.65 (0.94%), marking its highest settlement since February 28.
