Oil firms slightly as Trump policies continue to drag on prices

London: Oil prices edged up on Thursday after Saudi Arabia's state oil company raised its March crude prices sharply, but the gains barely dented the previous day's slide in benchmark Brent crude.

Brent crude futures rose 28 cents, or 0.4 per cent, to $74.89 a barrel by 0952 GMT. US West Texas Intermediate crude was up 35 cents, or 0.5 per cent, at $71.38.

Oil prices had plunged by more than 2 per cent on Wednesday as a large build in US crude and gasoline stockpiles signalled weaker demand while investors also weighed up the implications of a new round of US-China trade tariffs, including duties on energy products.

Prices have tumbled by about 10 per cent since January 15, five days before Donald Trump took over as U.S. President.

"We can expect significant volatility in pricing over the coming weeks and months as markets scramble to weigh the impact of Trump's new policy positions, not least regarding tariff measures," BMI analysts said in a note on Thursday.

A sharp increase in prices for Asian buyers by Saudi Aramco, the world's leading oil exporter, managed to stem Wednesday's sell-off.

"After the overnight sell-off and the Saudi news, there is likely to be some buying from traders covering shorts ahead of a strong band of support in the $70/68 region," said IG market analyst Tony Sycamore.

Trump has been quick to impose tariffs on China, though they have fallen short of his campaign threats so far.

Beijing has responded by announcing tariffs on imports of US oil, liquefied natural gas and coal on Tuesday, but China's purchases from the US are relatively modest, blunting the impact of the new measures.

"While some tariff measures could put upward pressure on oil prices, the net impact will likely be bearish, given their potentially adverse effects on the global economy and Trump's proven willingness to offer carve-outs for energy (to limit the impact on supply)," BMI said.