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LONDON: Oil prices edged up in Asian trading on Thursday after Saudi Arabia’s state oil company sharply raised March oil prices, but the increase was barely a blip on the biggest slide in benchmark Brent prices in nearly three months the previous day.
Brent crude futures rose 15 cents to $74.76 a barrel by 10:40 a.m. Saudi time. US West Texas Intermediate crude was up 20 cents to $71.23 a barrel.
Oil prices had fallen more than 2 percent on Wednesday as a large build in US crude and gasoline stockpiles signalled weaker demand, and as investors weighed the implications of a new round of US-China trade tariffs, including duties on energy products.
Prices have plunged about 10 percent from the 2025 highs on Jan. 15, five days before Donald Trump took over as US President. Analysts expect markets to be volatile in the coming weeks.
“We can expect significant volatility in pricing over the coming weeks and months as markets scramble to weigh the impact of Trump’s new policy positions, not least regarding tariff measures,” analysts from BMI said in a note on Thursday.
A sharp increase in prices for Asian buyers by Saudi Aramco, the world’s leading oil exporter, managed to stem Wednesday’s sell-off.
“After the overnight sell-off and the Saudi news, there is likely to be some buying from traders covering shorts ahead of a strong band of support in the $70/68 region,” said Tony Sycamore, market analyst with IG.
The US last month imposed aggressive new sanctions on Russia’s oil trade, targeting the “shadow vessels” understood to be utilized to evade trade blockades. Since assuming office, Trump has imposed tariffs on China, although they fell short of his campaign threats.
Beijing in response had announced tariffs on imports of US oil, liquefied natural gas and coal on Tuesday, but China’s purchases from the US are relatively modest, blunting the impact of the new measures.
“While some tariff measures could put upward pressure on oil prices, the net impact will likely be bearish, given their potentially adverse effects on the global economy and Trump’s proven willingness to offer carve-outs for energy (to limit impacts to supply),” BMI said.