What’s happening: Crude oil prices rose on Wednesday, even as the EIA predicted record production in the US this year.

What happened: Global macroeconomic uncertainty and geopolitical tensions have hit crude prices so far in 2025.

Sentiment for crude oil was supported on Wednesday by a lower-than-expected increase in US crude stockpiles.

Crude oil rises today

Why it matters: Crude oil prices have been on a downturn since the beginning of 2025, with President Donald Trump’s tariff policies sparking fears of a recession in the US and economic turmoil in the targeted nations.

Investors have been treading cautiously, with Canada and China not losing any time to announce retaliatory tariffs.

Will crude oil fall after today's rise?

Meanwhile, speculations of sanctions on Russian oil being lifted added to the volatility in crude oil prices. While Ukraine has agreed to a US proposal of an immediate one-month ceasefire, Russia is expected to demand the lifting of some sanctions to accept the ceasefire plan.

The EIA (Energy Information Administration) raised its projection for US crude production in 2025 to a record high of 13.61 million barrels per day. The agency also announced that US crude oil inventories had risen by 1.448 million barrels in the week ended March 7. However, the figure came in below market expectations of 2 million, lending support to crude oil prices.

The EIA report also showed that crude stockpiles at the Cushing, Oklahoma hub contracted by 1.228 million barrels in the week.

Crude oil

WTI crude oil for April delivery rose by $2.16% to $67.68 on Wednesday. WTI prices are down almost 5% over the past month and about 6% year to date. Brent for May settlement closed 2% higher at $70.95 a barrel.

What to watch: Investors will continue monitoring the Trump administration’s announcements related to tariffs, which has fuelled heightened macroeconomic uncertainty.

The OPEC+ decision to boost output in April will also remain in focus.