Oil prices edged higher in Asian trading on Thursday after Saudi Arabia’s state oil company sharply increased crude prices for March. However, the rise was minimal compared to the biggest drop in Brent crude prices in nearly three months recorded the previous day.
اضافة اعلانBrent crude futures rose by 8 cents to $74.69 per barrel as of 04:22 GMT, while U.S. West Texas Intermediate (WTI) crude gained 15 cents to reach $71.18 per barrel.
Oil prices had fallen more than 2% on Wednesday, as a significant rise in U.S. crude and gasoline inventories signaled weak demand. Investors also weighed the impact of a new round of U.S.-China tariffs, which included levies on energy products.
Prices have dropped nearly 10% from their highest levels of 2025, recorded on January 15—just five days before Donald Trump took office as President of the United States. Analysts expect market volatility in the coming weeks.
“We can expect significant price fluctuations in the weeks and months ahead as markets assess the impact of Trump's new policy stances, particularly regarding tariff measures,” analysts from BMI wrote in a note on Thursday.
The sharp price hike for Asian buyers by Saudi Aramco, the world’s largest oil exporter, helped limit Wednesday’s sell-off.
"Following the overnight sell-off and the Saudi price hike, we are likely to see some buying from traders covering short positions before reaching strong support levels between $70 and $68," said Tony Sycamore, a market analyst at IG.
Last month, the U.S. imposed new stringent sanctions on Russian oil trade, targeting so-called “shadow ships” believed to be used to circumvent trade restrictions. Since taking office, Trump has imposed tariffs on China, although they have been less severe than his campaign threats.
In response, Beijing announced on Tuesday new tariffs on U.S. oil, liquefied natural gas (LNG), and coal imports. However, China’s purchases from the U.S. remain relatively modest, limiting the impact of these measures.
“While some tariff measures may put upward pressure on oil prices, the net effect is likely to be bearish, given their potential negative impact on the global economy and Trump’s apparent willingness to grant energy exemptions to limit supply disruptions,” BMI noted.
