Mumbai, 25 Jan (Commoditiescontrol): Crude oil prices closed slightly higher on Friday, but the market ended the week in the red, breaking a four-week streak of gains. The dip came after U.S. President Donald Trump unveiled plans to boost domestic oil production while pressuring the Organization of the Petroleum Exporting Countries (OPEC) to reduce crude prices.
Brent crude futures settled at $78.50 per barrel, gaining 21 cents or 0.27%. Meanwhile, U.S. West Texas Intermediate (WTI) crude closed at $74.66 per barrel, up by just 4 cents or 0.05%. However, for the week, Brent declined 2.8%, and WTI dropped 4.1%.
Trump reiterated his call for OPEC to lower oil prices, aiming to strain Russia's revenues and expedite an end to the ongoing war in Ukraine. Despite these demands, analysts noted that U.S. sanctions targeting major producers like Russia and Iran could complicate efforts to reduce energy costs.
Addressing the World Economic Forum on Thursday, Trump urged Saudi Arabia, OPEC's de facto leader, to play a role in cutting prices. However, OPEC+ has stuck to its current plan of gradually raising oil output starting in April. Adding to the supply landscape, Chevron announced the launch of production at its $48 billion expansion of the Tengiz oilfield, expected to contribute around 1% of global crude supply.
Earlier in the week, Trump declared a national energy emergency, rolling back environmental regulations to encourage domestic oil and gas production. While these measures could support demand, analysts warned they might exacerbate global oversupply.
Geopolitical tensions also weighed on the market. Trump announced potential tariffs on the European Union, Canada, Mexico, and China, which could hurt global growth and dampen oil demand. Market experts predicted that prices would remain range-bound between $76.50 and $78 per barrel in the near term.
Despite temporary bullish factors like a significant decline in U.S. crude inventories, concerns over global oversupply and slowing demand from China continued to cap price gains. Data from the U.S. Energy Information Administration showed crude inventories at their lowest levels since March 2022, offering brief support to the market.
Looking ahead, the oil market remains cautious, balancing geopolitical uncertainties, supply dynamics, and global demand prospects.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
