SINGAPORE (Reuters) – Oil prices were little changed on Wednesday, after falling in the previous session, as declining inventories and expectations of supply disruptions due to sanctions on Russian tankers received support amid expectations of a decline in global demand for fuel.
Two-year futures rose to $79.94 a barrel by 0205 GMT, after falling 1.4% in the previous session. US West Texas Intermediate crude rose 12 cents, or 0.15 percent, to $77.62 a barrel, after falling 1.6 percent.
Prices fell on Tuesday after the US Energy Information Administration forecast that oil will come under pressure over the next two years as supply is expected to outstrip demand.
However, the market found support on Wednesday from a decline in crude inventories in the United States, the world's largest oil consumer, the American Petroleum Institute reported late Tuesday and expectations of supply disruptions after the US Treasury imposed sanctions on Russian oil producers and so-called With a shadow fleet of carriers.
“Oil prices are trading stronger in early morning trading in Asia today after American Petroleum Institute figures showed that US crude oil inventories fell more than expected over the past week,” ING analysts said.
Analysts added that while crude oil inventories in the country's main storage hub, Cushing, Oklahoma, increased by 600,000 barrels, inventories are still historically low. Cushing at the delivery site for WTI futures.
The American Petroleum Institute reported that US crude oil inventories fell by 2.6 million barrels in the week ending January 10, according to market sources citing API figures. They added that gasoline stocks rose by 5.4 million barrels, while distillate stocks rose by 4.88 million barrels.
A Reuters poll showed that US crude oil inventories fell by about 1 million barrels in the week ending January 10, ahead of an upcoming report from the Energy Information Administration, the statistical arm of the US Department of Energy, at 10:30 a.m. EDT. (1530 GMT) on Wednesday.
In its report, the Energy Information Administration expects Brent prices to decline by 8% to average $74 per barrel in 2025, then decline further to $66 per barrel in 2026, while West Texas Intermediate crude oil will average $70 in 2025 and decline. To $62 next year.
The Energy Information Administration said global demand is expected to average 104.1 million bpd in 2025, down from a previous estimate of 104.3 million bpd. This would be lower than its forecast for oil and liquid fuel production supplies of an average of 104.4 million barrels per day in 2025.
