- WTI price declines as Trump and Putin agree to a halt in strikes on energy infrastructure amid the Ukraine war.
- API Weekly Crude Oil Stock rose by 4.593 million barrels in the previous week.
- Escalating violence in the Middle East raises concerns over potential supply disruptions in key Oil-producing regions.
West Texas Intermediate (WTI) Oil price remains under pressure for the second consecutive day, trading around $66.50 per barrel during Asian trading hours on Wednesday. The downward trend is driven by expectations of increased Russian supply.
On Tuesday, US President Donald Trump and Russian President Vladimir Putin agreed to an immediate pause in strikes on energy infrastructure amid the Ukraine war. However, Putin declined to support a broader, month-long ceasefire negotiated by Trump’s team with Ukrainian officials in Saudi Arabia, indicating persistent tensions despite the temporary agreement on energy-related attacks.
As one of the world’s largest Oil producers, Russia has seen its output decline since the war began, largely due to Western sanctions. A potential ceasefire could lead to an easing of these sanctions, potentially increasing Oil supply and further pressuring prices.
Meanwhile, data from the American Petroleum Institute (API) on Tuesday showed a mixed picture for US crude inventories. Crude Oil stockpiles rose by 4.593 million barrels for the week ending March 14, while gasoline inventories declined by 1.71 million barrels and distillate stocks dropped by 2.15 million barrels.
However, geopolitical tensions in the Middle East continue to support Oil prices to some extent. Heightened violence threatens supply disruptions in key oil-producing regions. Trump reaffirmed his administration’s commitment to military action against Yemen’s Houthis and warned that Iran would be held accountable for any further attacks disrupting Red Sea shipping. Meanwhile, Israeli airstrikes in Gaza, which ended a week-long ceasefire, resulted in at least 200 casualties, according to Palestinian health authorities, reported by Reuters.
