08:44 AM EST, 02/21/2025 (MT Newswires) -- Oil prices moved lower early on Friday, dropping on weaker demand and robust supply as bitter winter cold in the northern United States fades and inventories rise.

West Texas Intermediate crude oil for April delivery was last seen down US$0.56 to US$71.92 per barrel, while April Brent crude was down US$0.53 to US$75.95.

Oil traders are adjusting to the start of a bearish outlook for the commodity, as U.S. winter demand eases following the end of a polar vortex that brought bitterly cold weather to northern states, raising demand and cutting supply as infrastructure froze. Demand growth from China, the No.1 importer remains weak and OPEC+ is sticking with a plan to gradually return 2.2-million barrels per day of production cuts to market starting in April, while Western hemisphere supply is growing.

The Energy Information Administration on Thursday reported commercial crude inventories rose by a more than expected 4.6-million barrels last week, though inventories of refined products dropped due to refinery maintenance and winter demand.

"With an elongated winter, a Distillate draw and an increase in product demand the refinery turnaround period is starting to leave a hole in product supply with utilization only running at 85%," PVM Oil Associates noted.

The prospect of easing sanctions on Russian exports as U.S. President Donald Trump warms to Vladimir Putin, his Russian counterpart, while turning against further support for Ukraine is also unsettling markets. Trump is also looking to boost U.S. production, which is already at a record 13.5-million barrels per day, while demand may fall if he follows through on plans to impose widespread tariffs on U.S. imports.

"The market also has to deal with an increasingly erratic message flow from Washington, which on one hand has raised the prospect of increased US production, while on the other causing concerns about the outlook for global growth and demand," Ole Hansen, head of commodity strategy at Saxo Bank, noted.