Oil prices fell slightly in early US trading on Thursday, easing after recovering from recent lows, as sentiment remained strained amid concerns over a US recession and high production.
Crude prices rebounded from more than three-year lows this week, boosted in part by a weak reading on US inflation, along with a weaker dollar. Data showing a much larger than expected drawdown in US gasoline inventories also helped ease some concerns about slowing demand.
Oil is still on track to fall sharply so far in 2025, however, as traders worry about weakening demand in major economies amid a US-led trade war.
US President Donald Trump threatened on Wednesday to impose 200% tariffs on alcohol imports from the European Union in response to the bloc launching retaliatory measures against his steel and aluminium levies, marking the latest escalation in international trade tensions.
Brent crude for May delivery fell 0.8% to $70.40 a barrel, while West Texas Intermediate crude fell 0.9% to $67.07 a barrel by 9:33 a.m. ET (13:33 GMT).
OPEC+ flags output increase despite oversupply concerns
The Organization of the Petroleum Exporting Countries and its allies, an oil group known as OPEC+, said in a monthly report on Wednesday that its oil output rose by 363,000 barrels per day to 41.01 million bpd in February, as the cartel began phasing out nearly two years of production cuts. The February increase was led by Kazakhstan, and came as the group prepares to raise output further in April.
However, OPEC's plan to increase output has raised concerns that the oil market could become oversupplied, even as a slowing global economy could dampen demand.
However, the cartel maintained its outlook for demand growth of 1.45 million barrels per day in 2025, saying it expects the global economy to take rising trade tariffs in stride. (Newsmaker23)
Source: Investing.com
