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• WTI price tumbles to around $72.60 in Wednesday’s late American session.
• US Crude oil stockpiles rose by 3.463 million barrels last week, according to the EIA. 
• The firmer USD weighs on the commodity price. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.60 during the late American session on Wednesday. The WTI price edges lower after US crude stockpiles rose more than expected last week.

US crude inventories rose last week. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending January 24 increased by 3.463 million barrels, compared to a decline of 1.017 million barrels in the previous week. The market consensus estimated that stocks would rise by 3.7 million barrels.

The White House said later Tuesday that US President Donald Trump’s plan to impose 25% tariffs on imports from Canada and Mexico from February 1. The Trump tariff threats may disrupt the flow of crude supplies, which weigh on the black gold in the near term. “While we expect prices to stay supported at current levels, news flow related to Trump is likely to drive volatility in the near term,” said UBS analyst Giovanni Staunovo. 

The US Federal Reserve left its benchmark rate unchanged at its January meeting on Wednesday and gave little insight on when it plans to lower borrowing costs. This, in turn, boosts the US Dollar (USD) broadly and might exert some selling pressure on the USD-denominated commodity price. Oil traders will keep an eye on the advanced US Gross Domestic Product (GDP) for the fourth quarter (Q4), followed by the weekly Initial Jobless Claims, and Pending Home Sales. 

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