February 20, 2025 – Crude oil futures experienced a slight decline during Asian trading on Thursday, halting the upward trend observed earlier this week.
Crude Oil Prices Ease in Thursday Trading
At 0600 GMT, the front-month April 2025 ICE Brent futures were trading at $75.88 per barrel, down from Wednesday’s closing price of $76.04 per barrel.
Similarly, April 2025 NYMEX WTI was priced at $71.80 per barrel, lower than Wednesday’s close of $71.95 per barrel. The March 2025 contract was trading at $71.94 per barrel ahead of its expiry.
Market Boosted by Supply Concerns
Earlier in the week, oil prices were supported by renewed concerns over supply disruptions. A drone attack on the CPC pipeline network raised fears of a 30% reduction in oil flows for the next two months, potentially removing over 400,000 barrels per day (bpd) of crude from the market. Additionally, ongoing cold weather in the US was impacting crude production, including a loss of around 150,000 bpd in North Dakota.
US Crude Stockpiles Weigh on Prices
However, the rally faltered after the American Petroleum Institute (API) reported that US commercial crude stockpiles increased by 3.34 million barrels for the week ending February 14, a fourth consecutive weekly rise. If confirmed by the Energy Information Administration (EIA) later on Thursday, this would suggest a larger-than-expected build in inventories.
OPEC+ and Sanctions Policy Add Uncertainty
Traders are also awaiting updates on potential decisions from OPEC+. Some reports this week suggested the group may delay planned production hikes scheduled for April.
There is ongoing uncertainty regarding US sanctions, particularly those affecting Russian crude. The Trump administration has also indicated potential actions against Iran and Venezuela, though no firm timelines have been set.
In Europe, the EU has approved a new sanctions package targeting 73 Russian vessels linked to the country’s shadow fleet, further complicating global oil dynamics.
Investors are also watching the outcome of ongoing trade disputes, with concerns over possible tariffs adding pressure on oil market sentiment. This continued uncertainty is expected to cap any significant upside in oil prices.
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