22.01.202618:05:56UTC+00Crude Oil Declines Further on Strong Inventory

WTI crude oil futures continued their downward trajectory, reaching the $59 per barrel level on Thursday, driven by increasing signs of an oversupplied market. The International Energy Agency highlighted that global oil supply is anticipated to substantially surpass demand this year, even after slightly revising its demand growth forecast upwards. Supporting these concerns, data from the EIA revealed that national inventories saw an increase of 3.6 million barrels of crude oil for the week ending January 16th, outpacing the expected rise of 1 million barrels. Additionally, Kazakhstan's export constraints were on the verge of resolution as repairs at Black Sea loading facilities neared completion. Furthermore, Reliance Industries expanded their procurement of Russian crude for their refineries, mitigating the risk of US sanctions obstructing their supply chain to the major crude importing nation. Market sentiment was also buoyed by the possibility of a ceasefire between Russia and Ukraine, following reports of a potential trilateral meeting with the US.