Crude oil futures made a recovery Thursday after falling on Wednesday, with the U.S. offering some tariff concessions. In early trading, March crude oil futures were priced at ₹5,817 on the Multi Commodity Exchange (MCX), marking a 1.06% increase compared to the previous day’s close of ₹5,756.
By 9:56 AM, May Brent oil futures were trading at $69.68, up by 0.55%, while April West Texas Intermediate (WTI) futures rose 0.60% to $66.71. Similarly, April futures on MCX were trading at ₹5,806, up 1.01% from the previous close of ₹5,748.
Trump Announces Tariff Exemptions for Automakers
On Wednesday, U.S. President Donald Trump announced that automakers would receive a one-month exemption from his 25% tariffs on imports from Mexico and Canada, provided they comply with existing free trade rules. Additionally, Trump expressed openness to considering other tariff exemptions, including potentially removing the 10% tariff on Canadian energy imports, such as crude oil and gasoline, if they meet trade agreement terms.
These developments contributed to the rebound in crude oil prices.
Market Sentiment Still Negative Despite Rebound
Despite Thursday’s rebound, market sentiment remains largely negative. According to a commodities report from ING’s Warren Patterson and Ewa Manthey, ICE Brent prices fell nearly 2.5% on Wednesday, briefly reaching their lowest point in three years and settling below $70 a barrel. Rising OPEC supply, combined with tariff uncertainties, has pressured oil prices.
The report highlighted that recent price weakness is making it challenging for U.S. producers to increase drilling activities. WTI prices, trading below $67 a barrel, are weaker in the longer term. The 2026 price for crude oil is currently around $63 a barrel, which could reduce drilling incentives. According to the Dallas Federal Reserve Energy Survey, producers typically need at least $64 per barrel to drill new wells profitably.
U.S. Crude Oil Inventories Rise
In a report by the U.S. Energy Information Administration (EIA), U.S. commercial crude oil inventories rose by 3.6 million barrels during the week ending February 28. This brought total crude oil inventories to 433.8 million barrels, about 4% below the five-year average for this time of year. The data also showed a 1.4 million barrel decrease in motor gasoline inventories, which were 1% above the five-year average.
For the four-week period ending February 28, total products supplied in the U.S. averaged 20.2 million barrels per day, up by 3.4% compared to the same period last year. Motor gasoline supply averaged 8.5 million barrels per day, up 0.9% year-over-year.
Other Commodities
In other commodity news, March aluminum futures on MCX were trading at ₹263.65, up 0.92% from the previous close of ₹261.25. On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at ₹8,016, a 0.48% increase from the previous close of ₹7,978. However, April jeera futures were down by 0.83%, trading at ₹20,790 compared to the previous close of ₹20,965.
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