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At 09:37 GMT, Light Crude Oil Futures are trading $69.37, down $0.28 or -0.40%.
Tariff Headlines and Supply Risks Drive Mixed Sentiment
The market is weighing two competing forces: U.S. policy-driven supply risks and broader macroeconomic concerns. On Wednesday, crude gained roughly 1% after U.S. inventory data showed a decline in crude and fuel stockpiles, reinforcing supply tightness. Further support came from Washington’s renewed threats of sanctions on countries importing Venezuelan oil.
India’s Reliance Industries—the operator of the world’s largest refining complex—plans to halt Venezuelan crude imports following the U.S. tariff announcement, signaling tightening availability. DBS Bank’s energy team noted this could partially realize upside risk in crude markets tied to Venezuela and Iran sanctions.
However, sentiment remains capped by demand-side uncertainties. President Trump’s latest 25% tariff on imported cars and light trucks is raising concerns about consumer costs and the auto sector’s demand for crude. While higher auto prices may curb gasoline demand, some analysts suggest it could slow the adoption of fuel-efficient or electric vehicles—potentially supporting crude demand in the near term.
OPEC+ Output Plans and China Data Add Layers to Outlook
Traders are also factoring in the possibility of an OPEC+ supply hike in May, which may limit bullish momentum. Technical resistance between $73.50 and $74.00 remains a key ceiling in WTI, according to OANDA analyst Kelvin Wong, who noted that bullish pressure could stall unless demand indicators strengthen.
Next week’s China Purchasing Managers’ Index data will be a focal point for gauging global demand health. Any sign of economic softness from the world’s top crude importer could pressure prices further.
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