“Oil prices rose in the second session on Thursday, January 16, supported by supply concerns amid US sanctions against Russia and a larger-than-expected draw in US crude inventories.”, — write: epravda.com.ua
Oil prices rose in the second session on Thursday, January 16, supported by supply concerns amid US sanctions against Russia and a larger-than-expected draw in US crude inventories. This is reported by Reuters. Brent crude futures were up 25 cents, or 0.3%, at $82.28 a barrel after rising 2.6% in the previous session to their highest level since July 26 last year. U.S. West Texas Intermediate crude futures were up 28 cents, or 0.4%, at $80.32 a barrel after rising 3.3% on Wednesday to their highest since July 19.Advertisement: U.S. crude inventories fall last week to the lowest since April 2022 as exports rose and imports fell, the Energy Information Administration (EIA) said on Wednesday. A drop of 2 million barrels outpaced a drop of 992,000. barrels, which analysts expected. The reduction has hurt global supply forecasts after the US imposed broader sanctions against Russian oil producers and tankers. New U.S. sanctions have forced Moscow’s top customers to look for replacements around the world, and shipping tariffs have also risen.Advertisement: The Biden administration on Wednesday imposed hundreds of additional sanctions targeting Russia’s military-industrial base and tax evasion schemes. Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, which have collectively cut output over the past two years, are likely to be cautious about increasing supply despite recent price gains, Commodity Context founder Rory Johnston said. After limiting oil revenues, Israel and Hamas agreed to end hostilities in Gaza and exchange Israeli hostages for Palestinian prisoners. In addition, global oil demand rose by 1.2 million barrels per day in the first two weeks of 2025 from the same period a year earlier, slightly below expectations, JPMorgan analysts wrote in a note. Analysts expect oil demand to rise by 1.4 million bpd year-on-year in the coming weeks due to increased travel in India, which is hosting a huge festival, as well as trips to celebrate the Lunar New Year in China at the end of January. Some investors also expect a potential interest rate cut by the US Federal Reserve before the end of the year following data on easing US core inflation, which could support economic activity and energy consumption.