Rudolph Angler Crude oil prices hit their lowest levels in 2024 as concerns about weak demand and rising US stockpiles grew. The escalating US-China trade war added more pressure on the market. China imposed retaliatory tariffs on US crude oil imports, further affecting prices.
China Imposes Tariffs on US Crude
On Tuesday, China’s State Council Tariff Commission announced a 10% tariff on American crude oil, starting on 10 February. This move is part of the ongoing trade conflict between the two nations.
Rising US Stockpiles Weigh on Oil Prices
The US Energy Information Administration (EIA) reported a big rise in crude inventories, signaling weaker energy demand. Crude stockpiles increased by 8.66 million barrels in the week ending 31 January, far more than the expected one million barrel rise.
West Texas Intermediate (WTI) fell 2.3%, dropping to $71 per barrel. Brent crude dropped 2.09%, reaching $74.61 per barrel on Wednesday.
Trump Pressures OPEC and Threatens Tariffs on Canadian Crude
US President Donald Trump pressured OPEC to lower oil prices. He also threatened to impose tariffs on Canadian crude oil but delayed action for 30 days.
Geopolitical Tensions Could Affect Oil Prices
Despite falling prices, conflicts in the Middle East may cause oil markets to remain volatile. Trump has proposed taking control of Gaza, which raises fears of instability in the region. He also plans to tighten sanctions on Iran.
Iran holds 12% of global oil reserves and has increased its exports since 2022. However, the country faces sanctions under Trump’s leadership.
OPEC+ announced it will increase oil supply from April, while removing the EIA as a monitor for production data.