Oil prices edged lower on Thursday as a larger-than-expected build in U.S. crude stockpiles dampened market sentiment.
Brent crude oil, against which Nigerian oil is priced, slipped 17 cents to $75.87 a barrel at around 7:00 am while U.S. West Texas Intermediate (WTI) crude dropped 30 cents to $71.95.
The March WTI contract, set to expire later in the day, fell 22 cents to $71.88, extending losses after a three-session rally.
Data from the American Petroleum Institute (API) showed that U.S. crude inventories rose by 3.34 million barrels last week, surpassing analysts’ forecasts of a 2.2 million barrel increase.
If confirmed by the U.S. Energy Information Administration (EIA) report due later Thursday, this would be the fourth consecutive weekly rise in U.S. crude stockpiles.
A strengthening U.S. dollar, fueled by import tariffs announced by the Trump administration, further pressured oil prices. Analysts warned that the tariffs, particularly on automobile imports, could slow global economic growth and weaken fuel demand.
“It is natural to be concerned about the global economic outlook as Donald Trump takes a sledgehammer smashing away at the existing global ‘free-trade structure’ with signals of 25% tariffs on car imports to the U.S.,” said Bjarne Schieldrop, chief commodities analyst at SEB.
Meanwhile, geopolitical risks in Russia and the Middle East continue to influence supply concerns.
The Caspian Pipeline Consortium, a major export route for Kazakhstan’s crude, saw flows reduced by 30% to 40% on Tuesday following a Ukraine drone attack on a Russian pumping station.
The disruption represents a potential loss of 380,000 barrels per day, according to Reuters calculations.
At the same time, renewed ceasefire negotiations between Israel and Hamas could ease market concerns over Middle East supply disruptions.
Also, the potential resumption of oil exports from Iraq’s Kurdistan region could add up to 300,000 barrels per day to the market.
With mixed supply and demand signals, oil markets remain volatile as traders await official U.S. inventory data and assess the broader impact of geopolitical developments and trade policies on global crude flows.
