Crude oil prices rose on Wednesday due to supply cuts from Russia and OPEC members, while U.S. oil inventories fell last week, market sources said, citing data from the American Petroleum Institute (API).
Likewise, the unexpected increase in job offers in the United States contributed to the expansion of economic activity and the subsequent rise in oil demand.
Brent rose 69 cents, or 0.9%, to $77.74 a barrel and U.S. West Texas Intermediate crude rose 87 cents, or 1.17%, to $75.12.
Oil production at the Organization of the Petroleum Exporting Countries fell in December after two months of growth, according to a survey by Reuters. Maintaining fields in the United Arab Emirates counteracted increased production in Nigeria and other group countries.
In Russia, average oil production in December was 8.971 million barrels per day, which is below the country’s target, Bloomberg reported, citing the Ministry of Energy.
“The recovery in oil prices comes as crude oil exports from Russia decline as maritime exports from Western ports continue to decline from their October 2024 peak,” said Harry Chilingiryan of Onyx Capital Group.
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Additionally, he pointed out that the upward price momentum was likely driven by API data, which showed U.S. crude inventories fell by about 4 million barrels despite strong gains in gasoline and distillate inventories.
“The optimistic mood appears to be continuing as oil prices continue to rise due to a combination of weather conditions, possible sanctions on Russia and hopes of a demand revival in China,” said Tamás Varga at brokerage PVM.
Reuters
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
