WTI edges higher above $69.50 on Venezuela supply concerns

• WTI price gains momentum to near $69.60 in Thursday's early Asian session. 
• Trump said any country buying Venezuelan oil will face a 25% tariff.
• Crude oil stockpiles in the US fell by 3.341 million barrels last week, according to the EIA.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.60 during the early Asian session on Thursday. The WTI price extends the rally to a near four-week high amid mounting concerns about tighter global supply after the US threat of tariffs on countries buying Venezuelan production.

WTI price has been supported since US President Donald Trump slapped a 25% secondary tariff on nations that buy Venezuelan oil or gas, effective April 2. According to Commerce Department trade data, the United States purchased $5.6 billion worth of oil and gas from Venezuela in 2024, making it one of the top foreign suppliers of oil to the US last year.

The decline in crude oil inventories contributes to an increase in crude oil prices. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending March 21 fell by 3.341 million barrels, compared to an increase of 1.745 million barrels in the previous week. The market consensus estimated that stocks would decrease by 1.6 million barrels. 

On the other hand, a maritime and energy ceasefire between Russia and Ukraine offset concerns about tighter global supply, which might cap the upside for the WTI price. The US 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.