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• WTI price edges lower to $57.80 in Thursday’s Asian session. 
• Saudi Arabia is taking strategic steps to maintain its economic stronghold by increasing oil production. 
• Crude oil stockpiles in the US fell by 2.696 million barrels last week, according to the EIA. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $57.80 during the Asian trading hours on Thursday. The WTI price remains on the defensive after posting its worst monthly drop since November 2021 amid the concerns over a global economic downturn and the signal from Saudi Arabia to sustain low oil prices. 

WTI price extends the decline after Reuters reported that Saudi Arabia is willing to accept lower prices rather than consider additional production cuts. “History shows that when OPEC+ leadership decides to encourage compliance by supply pressure, it does not stop until it achieves its goal,” said Bob McNally, president and founder of Rapidan Energy Advisers LLC.

The weaker-than-expected US Gross Domestic Product (GDP) data contributes to the WTI’s downside. The Bureau of Economic Analysis revealed on Wednesday that the US economy contracted at an annualised rate of 0.3% in the first quarter (Q1) of 2025. This report suggests that tariffs may be weighing on economic growth.

The unexpected decline in crude inventories indicates a greater oil demand, which might support the WTI price. The Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending April 25 fell by 2.696 million barrels, compared to an increase of 244,000 barrels in the previous week. The market consensus estimated that stocks would drop by 600,000 barrels.  

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