Oil prices settled largely unchanged in volatile trade on Thursday, with Brent rising 16 cents (0.2%) to $69.46 and WTI gaining 5 cents (0.1%) to $66.36. Brent had previously hit a low of $68.33 on Wednesday, its weakest since December 2021, following a larger-than-expected U.S. crude inventory build, OPEC+’s decision to raise output for the first time since 2022, and newly enacted U.S. tariffs.
Market uncertainty persisted as Russia signaled interest in a Ukraine peace deal while the U.S. temporarily exempted goods from Canada and Mexico from 25% tariffs for one month. Discussions continued over a potential elimination of the 10% tariff on Canadian energy imports. Chinese officials hinted at economic stimulus measures to counteract the trade war’s impact, while the U.S. reaffirmed its maximum-pressure sanctions campaign on Iran, aiming to collapse its oil exports.
Analysts pointed to greater downside risks for oil demand than supply, as spare production capacity can offset disruptions, but economic pressures, including sanctions and tariffs, weigh on consumption. An OPEC+ delegate viewed the recent price decline as excessive and anticipated a gradual market recovery.