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Oil rose sharply in Asian trading on Thursday, 6 February, after Saudi Arabia’s state oil company raised oil prices for March. However, this increase was insignificant amid the biggest drop in benchmark Brent prices in the last three months the day before.
According to Ukrinform, this was reported by Reuters.
Brent futures rose 8 cents to $74.69 per barrel. US West Texas Intermediate rose 15 cents to $71.18 per barrel.
Oil prices fell by more than 2% on Wednesday due to a significant increase in US oil and gasoline stocks, which indicated a decline in demand. Investors are also assessing the impact of a new round of trade tariffs between the US and China, including the introduction of duties on energy.
Overall, prices are down about 10% from the 2025 highs recorded on 15 January. Analysts predict further market volatility in the coming weeks.
“We can expect significant volatility in pricing over the coming weeks and months as markets analyse the impact of Trump’s new policy decisions, including tariff measures,” BMI analysts said.
A sharp increase in prices for Asian buyers from Saudi Aramco helped to stop the market selling. “After the overnight drop and the news from Saudi Arabia, buying is likely to begin from traders covering shorts ahead of a strong support zone in the $70-68 range,” commented IG market analyst Tony Sycamore.
Meanwhile, the US imposed new sanctions on Russian oil, targeting “shadow vessels” used to circumvent restrictions. In addition, President Donald Trump imposed tariffs on China, to which Beijing responded with duties on imports of US oil, liquefied natural gas and coal. However, the volume of Chinese purchases from the US remains relatively small, which minimises their impact.
“While some tariff measures may put upward pressure on oil prices, the overall effect is likely to be bearish due to the possible negative impact on the global economy,” BMI said.
