Investing.com – Crude oil prices moved higher on Thursday, recovering from losses posted after the previous session’s downbeat U.S. supply data, although gains remained limited.
The U.S. Energy Information Administration reported on Wednesday that crude oil inventories rose by for the week ended March 2.
While that was below expectations for a rise of 2.723 million barrels, it was the second-straight weekly build in crude stockpiles, adding to concerns that rising U.S. output could dampen global efforts to rid the market of excess supplies.
The International Energy Agency earlier in the week, saying the country would be producing a total of nearly 17 million barrels per day (bpd) in 2023.
U.S. crude oil production has already surpassed that of top exporter Saudi Arabia to 10.28 million bpd.
The Organization of the Petroleum Exporting Countries (OPEC), along with some non-OPEC members led by Russia, agreed in December to extend oil output cuts until the end of 2018.
Markets were also jittery as U.S. President Donald Trump was expected to give more details later Thursday on his plans to impose tariffs of 25% on steel imports and 10% on aluminum imports in a recommitment to his nationalist trade agenda.
Sentiment waned after Trump’s economic adviser Gary Cohn announced on Tuesday. The decision was said to have been made following a disgreement between Cohn and the U.S. President over the import tariffs.
Traders fear that the proposed tariffs could spark inflation and provoke retaliation from U.S. trade partners. Major holders of U.S. Treasuries, including China and the European Union, could reduce their holdings of U.S. assets in response.
The White House said late Wednesday that Canada, Mexico and possibly other countries may be exempted at least for a while from the proposed tariffs.
Elsewhere, fell 0.23% to $1.913 a gallon, while held steady at $2.776 per million British thermal units.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.