WATCH THE VIDEO HERE Brent crude continued its sharp downturn on Wednesday as it plunged for the fourth consecutive session and settled below $70 per barrel. The price of the international crude benchmark slid by $1.74 or 2.45 per cent to $69.30 a barrel and the US West Texas Intermediate crude (WTI) lost $1.95 or 2.86 per cent to trade at $66.31 a barrel. The market faced woes after US crude oil stockpiles posted a larger-than-expected build, adding further headwinds Crude inventories saw an increase of 3.6 million barrels during the week ending February 28, according to data from the US Energy Information Administration released on Wednesday. Prior to the crude data released by the US official agency, the American Petroleum Institute (API) reported on Tuesday a dip of 1.455 million barrels in US. Meanwhile, investors worried about the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) plans to increase output in April. The group said Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Kazakhstan, Oman and Algeria will start unwinding a 2.2 million barrel per day cut from April. It also stressed that the return of oil “may be paused or reversed subject to market conditions’’. Pressure came as the market weighs US tariffs on Canada, China and Mexico. The imposition of tariffs on China, Canada and Mexico by the US sparked swift reprisals from each nation that increased concerns over a slowdown in economic growth and the consequent impact on energy demand. Canada and China retaliated immediately against President Donald Trump’s tariffs on Tuesday, and Mexico said it would respond in due time, without giving details. On the supply front, the US withdrew license that it granted to producer Chevron since 2022 to operate in Venezuela and export its oil. The decision puts 200,000 barrels per day of supply at risk. The market is also anticipating possible suspension of sanctions on Russian oil after Ukraine indicated that it would sign a mineral deal. However, analysts point out that Russia’s commitment to OPEC+ will cushion excess supply that may come from the lifting of the sanctions.
Brent Falls Below $70 as Inventories Build Amid Supply Glut
