The price of a barrel of oil rose globally, during today’s trading, Thursday, January 26, 2023, after US crude stocks jumped less than expected.
Investors are looking forward to more clarity on supply drivers, including the OPEC+ meeting and the imminent EU ban on Russian oil derivatives.
The global price of a barrel of oil today
By 07:45 a.m. GMT (10:45 a.m. Mecca time), the price of benchmark Brent crude futures – for delivery in March 2023 – rose 0.19%, to $86.28 a barrel.
The price of US West Texas crude futures – delivery in March 2023 – increased by 0.39%, to $80.46 a barrel, according to data viewed by the specialized energy platform.
And oil prices witnessed volatile dealings, yesterday, Wednesday, January 25, with the release of US inventories data, and amid hopes for increased demand.
Oil market conditions
“The market is waiting for more clarity on the upcoming European ban on Russian refined products and the subsequent adjustment in trade flows, as OPEC+ delegates head into their next meeting,” Citi analysts said in a note on Thursday.
“The upcoming EU ban on Russian refined products remains a major market concern, with widespread disruptions expected,” Citi analysts added, Reuters reported.
Meanwhile, sources in OPEC + said that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, in the alliance known as OPEC +, are likely to endorse the current production levels at the meeting of the first of February.
US oil stocks
The global price of a barrel of oil changed slightly after data showed an increase in US crude inventories, which were less than expected.
The Energy Information Administration said that crude inventories rose by 533,000 barrels to 448.5 million barrels in the week ending January 20.
The Energy Information Administration said that was far below expectations of a 1 million-barrel rise, even though crude inventories are at their highest levels since June 2021.
The rise in inventories limited the gains in the price of a barrel of oil globally. It reflects weak fuel demand, as well as broader concerns about a global economic slowdown.
Global economic growth is expected to barely move above 2% this year, according to a Reuters poll of economists, who said the biggest risk was a further downturn in their view.
This was at odds with the widespread optimism in the markets since the beginning of the year.
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