WTI drifts higher above $69.00 on Venezuela supply worries

• WTI price edges higher to $69.15 in Wednesday's early Asian session.
• Crude oil stockpiles in the US fell by 4.6 million barrels last week, according to the API.
• Trump said he will impose tariffs on countries that buy oil and gas from Venezuela.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.15 during the early Asian session on Wednesday. The WTI price extends its upside on a larger-than-expected crude draw and concerns about tighter global supply due to threatened US tariffs on countries buying Venezuelan production.

Crude Oil inventories declined larger than expected last week. The American Petroleum Institute (API)  weekly report showed crude oil stockpiles in the United States for the week ending March 14 fell by 4.6 million barrels, compared to an increase of 4.593 million barrels in the previous week. The market consensus estimated that stocks would decrease by 2.5 million barrels. 

US President Donald Trump said late Monday that he would be placing a 25% tariff on all imports from any country that buys oil or gas from Venezuela, effective April 2, as well as imposing new tariffs on the South American country itself. The fears of tighter global supply lift the WTI price to a three-week high. 

On the other hand, the United States reached deals with Ukraine and Russia to pause attacks at sea and against energy targets, with Washington also attempting to ease certain sanctions against Moscow.  A maritime and energy ceasefire between Russia and Ukraine offset concerns about tighter global supply, which might drag the WTI price lower.