On Wednesday, oil prices experienced a modest increase. A barrel of Brent crude, the North Sea variety for March delivery, was priced at $80.20, marking a 28-cent rise from the previous day. Meanwhile, a barrel of West Texas Intermediate (WTI) crude, set for February delivery, increased by 35 cents to $77.85.
The International Energy Agency’s (IEA) forecast for global oil demand growth did not significantly impact prices. The agency, representing industrialized nations, predicts an average daily increase in global oil demand of 1.05 million barrels in 2025. This estimate is slightly lower than their previous projection of a 1.08 million-barrel daily increase.
However, the IEA experts also anticipate that the global oil surplus for this year may be smaller than initially expected. They attribute this adjustment to new sanctions imposed by the outgoing U.S. administration on Russia’s energy sector. These measures, according to the IEA, could “significantly disrupt” Russian oil exports.
Additionally, exports from Iran, a major oil producer, could face restrictions if the incoming U.S. administration, led by President-elect Donald Trump, adopts a stricter stance as promised. This was highlighted in the IEA’s monthly report.
Overall, investors in the oil market have shown caution ahead of key economic data. Later today, U.S. inflation figures for December are scheduled for release. These numbers are closely watched as they may provide insights into the Federal Reserve’s future monetary policy and have a significant impact on financial markets.
