Oil prices steady as investors weigh global trade prospects

Oil drilling rigs

Oil prices steadied on Thursday after the Federal Reserve kept interest rates unchanged and following a signal from the White House that US President Donald Trump remains firm on his tough trade stance toward Canada and Mexico.

Brent crude futures for March delivery remained unchanged at $76.58 a barrel as of 9:10 am KSA time.

Meanwhile, US WTI crude futures for March delivery rose slightly by 0.11% to $72.70 a barrel, after both benchmarks fell by more than 1% at the close of the previous session.

Yesterday’s decline was driven by the Fed’s decision to keep interest rates unchanged and its warning about persistent inflationary pressures amid strong economic activity and a tight labor market.

Additionally, oil prices faced downward pressure following US Energy Information Administration (EIA) data, which showed a rise in crude inventories for the first time in 10 weeks, increasing by 3.5 million barrels last week—far exceeding expectations for an increase of 1.1 million barrels.

However, oil found support from trade-related risks stemming from the policies of the new US president. White House spokesperson Carolyn Leavitt stated that Trump remains determined to impose tariffs on both Mexico and Canada this coming Saturday.

She further added in a press briefing that Trump is still seriously considering new tariffs on China.