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WTI price rebounds to around $66.25 in Wednesday’s early Asian session.
Softer USD and rising Middle East geopolitical tensions boost the WTI price.
Crude oil stockpiles in the US rose by 4.247 million barrels last week, according to the API.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.25 during the early Asian session on Wednesday. The WTI price recovers some lost ground on the weakening in the US Dollar (USD) and escalating geopolitical tensions in the Middle East.
A decline in the Greenback lifts the USD-denominated commodity price as it makes oil less expensive for overseas buyers. The US Dollar Index (DXY), a measure of the USD's value relative to its most significant trading partners' currencies, declines to new multi-month lows near 103.20.
A Houthi spokesman said late Tuesday that they will attack any Israeli ship that violates the group's ban on Israeli ships passing through the Red and Arabian Seas, the Bab al-Mandab Strait, and the Gulf of Aden, effective immediately.
Meanwhile, Trump is trying to choke off Iranian oil exports as part of his attempts to push Tehran to curtail its nuclear program. Iran's Supreme Leader, Ayatollah Ali Khamenei, said on Saturday that his country will not be bullied into negotiations. The rising geopolitical tensions in the Middle East could provide some support to the WTI price in the near term.
Crude Oil inventories climbed last week. The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the United States for the week ending February 28 rose by 4.247 million barrels, compared to a fall of 1.455 million barrels in the previous week. The market consensus estimated that stocks would increase by 2.1 million barrels.
US President Donald Trump’s tariff policy uncertainty and the concern over the impact of tariffs on global economic growth might undermine the WTI price. Trump reversed his decision to double tariffs on Canadian steel and aluminum to 50%, which he announced late Tuesday. The White House confirmed that fresh 25% tariffs on all imported steel and aluminum will still go into effect on Wednesday, including against allies and major US suppliers Canada and Mexico.
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