Brent hits over 3-yr low after US crude stock build, OPEC+ hike, Trump tariffs

Global benchmark Brent crude slumped to a more than three-year low on Wednesday, after U.S. crude oil stockpiles posted a larger-than-expected build, adding a further headwind as investors worried about OPEC+ plans to increase output in April and U.S. tariffs on Canada, China and Mexico.

Brent futures were trading $2.58, or 3.6%, lower at $68.46 a barrel by 11:42 a.m. EST. (1642 GMT), after hitting $68.33, the lowest since December 2021.

U.S. West Texas Intermediate crude (WTI) fell $2.90, or 4.3%, to $65.36 a barrel, after touching $65.22, its lowest since May 2023.

U.S. crude stocks rose more than expected last week amid seasonal refinery maintenance, while gasoline and distillate inventories fell due to a hike in exports, the Energy Information Administration said.

Crude inventories rose by 3.6 million barrels to 433.8 million barrels in the week, the EIA said, far exceeding analysts' expectations in a Reuters poll for a 341,000-barrel rise.

Brent fell more than $2 after the data was released.

"The imposition of tariffs on China, Canada and Mexico by the U.S. sparked swift reprisals from each nation that increased concerns over a slowdown in economic growth and the consequent impact on energy demand," Ashley Kelty, an analyst at Panmure Liberum, said.

Canada and China retaliated immediately against Trump's tariffs on Tuesday, and Mexican President Claudia Sheinbaum said the country would respond, without giving details.