WTI hovers around $78.50 after recent gains on US Crude Oil Stocks Change

West Texas Intermediate (WTI) oil price edges lower to near $78.50 per barrel during the Asian trading hours on Thursday. However, Crude oil prices surged on Wednesday after US oil stockpiles rose less than expected for the week ending on March 1.

US Energy Information Administration (EIA) showed that Crude Oil Stocks Change rose for a sixth week in a row, building by 1.367 million barrels against the expected 2.116 million barrels and 4.199 million barrels prior. Additionally, US API Weekly Crude Oil Stock data reported build-in stockpiles of 0.423 million barrels, contrary to market expectations of a decrease to 2.6 million barrels from the previous 8.428 million barrels.

Additionally, the prices of Crude oil received support for a weaker US Dollar (USD) after the Federal Reserve (Fed) Chair Jerome Powell’s indication that the central bank is prepared to lower borrowing costs "at some point this year," during his testimony before the House Financial Services Committee.

Also, the positive sentiment surrounding the Chinese economy, highlighted by the Trade Balance data, may buoy oil prices. China's Trade Balance for February surged to $125.16 billion, surpassing expectations of $103.7 billion and the previous figure of $75.34 billion. Additionally, year-on-year imports and exports increased by 3.5% and 7.1%, respectively.

Saudi Arabia's unexpected decision to raise prices of its primary grade for buyers in Asia comes after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter.