Image credit: Global Risk Management

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The weekly U.S. oil inventory data from the EIA showed a smaller-than-expected build in crude oil stocks, 2.4 mio. barrels versus 2.7 mio. barrels expected; and both distillates and gasoline stocks fell more than expected, 0.5 and 0.8 mio. barrels respectively. However, it is the third week of increasing crude oil inventories which weighed on oil prices along with news of another increase in total U.S. crude oil production to 10.369 mio. barrels per day last week. Oil prices dropped almost immediately following the data release.

Fears of a global trade war continue to loom and affect the financial markets, spilling over to the oil market; weighing on prices. The U.S. has announced it will impose tariffs on aluminum and steel; several countries and the EU have mentioned the option of retaliatory tariff actions.

Turning to economic data, this morning saw improved Japanese GDP as well as improved Chinese trade balance for February. Later today, the eurozone interest rate decision followed by press conference.

Next major potential oil market mover could be tomorrow's weekly U.S. oil rig count from Baker Hughes.