WTI drops to near $75.00 due to uncertain potential impact of Trump's proposed tariffs

• WTI price depreciates due to uncertainty surrounding the impact of President Trump's proposed tariffs and energy policies.
• API Weekly Crude Oil Stock rose by 1 million barrels in the previous week.
• Trump threatened to impose "high levels" of sanctions and tariffs on Russian imports.

West Texas Intermediate (WTI) Oil price extends its losing streak for the sixth successive session, trading around $74.90 during the early European hours on Thursday. Crude Oil prices decline amid uncertainty surrounding how US President Donald Trump's proposed tariffs and energy policies might affect global economic growth and energy demand.

Traders evaluate the potential impact of Trump's proposed 10% tariff on imports from China, the world's largest Oil importer and a key manufacturing hub. While the 10% tariff is significantly lower than the previously threatened 60%, it has somewhat eased market concerns. However, Trump's additional threats to impose tariffs on the European Union, as well as 25% tariffs on Canada and Mexico, continue to fuel uncertainty in the market.

The American Petroleum Institute (API) report suggested a renewed increase in US crude Oil inventories. According to the API Weekly Crude Oil Stock report, crude stockpiles rose by 1 million barrels during the week ending January 16, marking the first increase after five consecutive weeks of declines.

Crude Oil markets may also face potential supply disruptions as President Donald Trump threatened on Wednesday to impose "high levels" of sanctions on Russia and tariffs on Russian imports. Trump called for a resolution to the war in Ukraine, stating, according to CNBC.

"If we don't make a 'deal,' and soon, I have no other choice but to put high levels of taxes, tariffs, and sanctions on anything being sold by Russia to the United States (US) and various other participating countries," he wrote on Truth Social.

In related news, Saudi Arabia's crude Oil exports reached an eight-month high in November, increasing by 4.7% to 6.2 million barrels per day (bpd), up from 5.9 million bpd in October. However, crude production saw a slight decline, slipping to 8.9 million bpd from 9 million bpd.

Meanwhile, several ports in Texas began reopening on Wednesday following disruptions caused by Winter Storm Enzo earlier this week, which had significantly impacted shipping and energy operations in the region.