Oil prices hit their lowest levels this year. China placed new tariffs on US crude, and US stockpiles grew. China announced a 10% tax on US crude oil, farm equipment, and vehicles. The tariffs will start on 10 February. This adds pressure to the oil market. China is the world’s largest oil buyer, and investors worry about weak demand.

The US Energy Information Administration (EIA) said oil reserves grew by 8.66 million barrels in one week.

Oil prices fell:

• West Texas Intermediate (WTI): Down 2.3% to $71 per barrel.
• Brent crude: Down 2.09% to $74.61 per barrel.

President Donald Trump asked Saudi Arabia and OPEC to lower prices. He also plans to increase US oil output.

Oil prices could rise again if conflicts in the Middle East get worse. Trump suggested taking control of Gaza, which could increase tensions. Iran exports 1.5 million barrels per day, but sanctions may cut production.

Meanwhile, OPEC+ will start raising oil supply in April but will no longer use the EIA for monitoring.