WTI extends downside to near $75.00 amid uncertainties

• WTI price edges lower to around $75.00 in Thursday's early Asian session.
• Trump tariff threats weigh on the WTI price.
• API reported an unexpected crude oil inventory build last week. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $75.00 on Thursday. The WTI price extends its decline to a fresh one-week low as traders assess how US President Donald Trump's proposed tariffs could affect the global energy demand and economy. 

Trump said on Monday that he was considering imposing 25% tariffs on Canada and Mexico while discussing imposing a 10% tariff on goods imported from China on February 1. Tariffs could potentially slow economic growth and drag the black gold lower. 

"Possible sanctions under the new Trump administration remain unclear, with possible tariffs related to Canada and Mexico now seemingly at the forefront of trader uncertainties," said analysts at energy advisory firm Ritterbusch and Associates.

The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the United States for the week ending January 16 increased by a million barrels, compared to a decline of 2.6 million barrels in the previous week.

Crude oil inventories dropped by more than 12 million barrels in 2024, according to the API, with the downward trend continuing beyond the new year.  

On Tuesday, the US Energy Information Administration (EIA) suggested that Oil prices are expected to decline this year and next as weak economic activity and energy transition efforts weighed heavily on the US and China. "Strong global growth in production of petroleum and other liquids and slower demand growth put downward pressure on prices," according to EIA economists.