WTI drifts higher above $69.50 amid escalating trade war risks

• WTI price edges higher to $69.70 in Friday's early Asian session.
• Trump threatened tariffs on buyers of Venezuelan oil.
• Crude oil stockpiles in the US fell by 3.341 million barrels last week, noted EIA.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.70 during the early Asian session on Friday. The WTI price gains momentum to a one-month high as the US threat of tariffs on countries buying Venezuelan production still supports prices. 

WTI price has edged higher since US President Donald Trump slapped a 25% secondary tariff on nations that buy Venezuelan oil or gas, effective April 2. The United States (US) bought $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, according to Commerce Department trade data.

The decline in crude oil inventories provides some support to the crude oil prices. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US 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. 

However, the concerns that Trump auto tariffs will slow oil demand could drag the WTI price lower. On Wednesday, US President Donald Trump unveiled his plan to implement 25% tariffs on imported cars and light trucks effective on April 2, while those on auto parts begin on May 3. "The biggest headwind for oil right now are the concern about tariffs, and tariffs might slow demand," said Phil Flynn, senior analyst with Price Futures Group.