Crude oil futures saw a decline in trading on Thursday morning, with focus on tensions surrounding tariff wars. May Brent oil futures were at $70.90, down by 0.07%, while April crude oil futures on WTI stood at $67.57, a decrease of 0.16%. On the Multi Commodity Exchange (MCX), March crude oil futures were trading at ₹5,885, down by 0.37%, and April futures were at ₹5,891, a decrease of 0.25%.
The ongoing tariff wars between major economies, particularly the US and the European Union, have impacted market sentiments. US President Donald Trump’s threat to impose more tariffs on EU goods has heightened tensions. In the US, crude oil inventories increased in the week ending March 7.
According to the US Energy Information Administration (EIA), commercial crude oil inventories rose by 1.4 million barrels, totaling 435.2 million barrels, which is 5% below the five-year average. Meanwhile, motor gasoline inventories decreased by 5.7 million barrels from the previous week.
Despite the tariff tensions, lower-than-expected increase in US crude oil inventories and positive US consumer price inflation data supported the market. OPEC’s latest monthly report maintained demand and supply estimates for 2025 and 2026. The organization remains optimistic about oil demand growth, with projections exceeding those of other agencies like the EIA and IEA.
In other commodities, March natural gas futures and guargum contracts saw declines, while April turmeric futures also traded lower. March natural gas futures were trading at ₹353.40 on MCX, down by 2.46%. On the National Commodities and Derivatives Exchange (NCDEX), guargum contracts and turmeric futures were also down in early trading.
Overall, the crude oil market remains sensitive to geopolitical tensions and trade uncertainties, impacting prices and market dynamics.
