Oil Prices Rebound After Dropping Below $70 Amid Trade War and Supply Concerns
Oil prices saw a strong recovery in Asian trading on Thursday after plunging to multi-year lows. Market sentiment improved as the U.S. announced limited tariff concessions, easing fears of an escalating trade war. However, oil traders remain cautious as rising U.S. crude inventories and an OPEC+ production increase signal potential oversupply risks.
Key factors driving the oil market rebound:
- U.S. tariff relief: Markets welcomed temporary exemptions on auto and agricultural goods, offering hope for reduced economic impact.
- China stimulus hopes: The world’s largest oil importer is expected to introduce economic support measures, fueling demand optimism.
- Oil inventory concerns: A higher-than-expected U.S. crude stock build triggered concerns over cooling demand.
- Mexico’s shifting exports: Pemex is actively seeking buyers in Asia and Europe to counter U.S. trade tariffs, reshaping global oil trade flows.
Brent crude futures for May rose 0.5% to $69.66 per barrel, while WTI crude climbed 0.5% to $66.25. Despite the rebound, oil prices remain volatile as global trade tensions and supply concerns persist.