WTI rises toward $71.00 but remains on track for a third consecutive weekly decline

• WTI price heads for a third consecutive weekly loss as Trump reaffirms plans to boost domestic Oil production.
• Oil prices depreciated following a sharp rise in US crude and gasoline stockpiles, signaling weaker demand.
• Saudi Aramco raised its prices amid growing demand from China and India, along with disruptions to Russian supply.

West Texas Intermediate (WTI) Oil price pauses its four-day losing streak but remains on track for a third consecutive weekly decline, trading around $70.80 per barrel during early European hours on Friday.

Crude Oil prices faced pressure after US President Donald Trump reaffirmed plans to increase domestic Oil production to push prices lower. His commitment came amid ongoing concerns over an already high supply.

Additionally, Oil prices declined following a sharp rise in US crude and gasoline stockpiles, signaling weaker demand. US crude inventories surged by 8.664 million barrels for the week ending January 31, 2025--the largest increase in nearly a year, far exceeding market expectations of a 2.6 million-barrel increase.

US-China trade tensions also weighed on the market, as Beijing imposed tariffs on US Oil, LNG, and coal in retaliation for Trump's recent measures. However, the impact is expected to be limited due to China's relatively small imports of US energy products. Despite this, hopes for easing trade tensions persist as President Trump and Chinese President Xi Jinping plan to discuss potential tariff rollbacks, according to Reuters.

Providing some support to prices, Saudi Aramco's price hike was fueled by growing demand from China and India, coupled with disruptions to Russian supply resulting from US sanctions. Further supply risks remain as US President Donald Trump's renewed efforts to eliminate Iran's oil exports could potentially remove up to 1.5 million barrels per day from the market.