Oil prices decline on oversupply concerns, weekly loss expected
OIL & GAS

Oil prices decline on oversupply concerns, weekly loss expected

Oil prices slipped amid concerns over oversupply and a stronger dollar, despite a significant drop in U.S. fuel stocks. Brent crude futures fell by 30 cents, or 0.41%, to $72.26 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined by 25 cents, or 0.36%, to $68.45 per barrel as of 0105 GMT.

For the week, Brent is poised for a 2.2% drop, and WTI is set for a 2.7% decline.

U.S. crude inventories rose by 2.1 million barrels last week, according to the Energy Information Administration (EIA), far exceeding the expected 750,000-barrel increase. However, gasoline stocks fell by 4.4 million barrels, reaching their lowest levels since November 2022, defying predictions of a 600,000-barrel build. Distillate inventories, including diesel and heating oil, also saw an unexpected decline of 1.4 million barrels.

While signs of stronger fuel demand provided some support, ANZ analyst Daniel Hynes noted that the market remains pressured by a bleak demand outlook.

The International Energy Agency (IEA) forecasts global oil supply to exceed demand in 2025, citing rising production from non-OPEC+ producers like the U.S., despite ongoing production cuts. The IEA adjusted its 2024 demand growth forecast slightly upward to 920,000 barrels per day (bpd) but left its 2025 outlook nearly unchanged at 990,000 bpd.

OPEC recently revised its global demand growth forecasts downward for 2024 and 2025, marking its fourth consecutive downgrade, citing economic weaknesses in China, India, and other regions.

Adding further pressure, the U.S. dollar surged to a one-year high, driven by higher yields and the impact of Donald Trump's presidential election victory. The stronger dollar reduces the purchasing power of buyers using other currencies, weighing on oil prices. (ET)

Oil prices slipped amid concerns over oversupply and a stronger dollar, despite a significant drop in U.S. fuel stocks. Brent crude futures fell by 30 cents, or 0.41%, to $72.26 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined by 25 cents, or 0.36%, to $68.45 per barrel as of 0105 GMT. For the week, Brent is poised for a 2.2% drop, and WTI is set for a 2.7% decline. U.S. crude inventories rose by 2.1 million barrels last week, according to the Energy Information Administration (EIA), far exceeding the expected 750,000-barrel increase. However, gasoline stocks fell by 4.4 million barrels, reaching their lowest levels since November 2022, defying predictions of a 600,000-barrel build. Distillate inventories, including diesel and heating oil, also saw an unexpected decline of 1.4 million barrels. While signs of stronger fuel demand provided some support, ANZ analyst Daniel Hynes noted that the market remains pressured by a bleak demand outlook. The International Energy Agency (IEA) forecasts global oil supply to exceed demand in 2025, citing rising production from non-OPEC+ producers like the U.S., despite ongoing production cuts. The IEA adjusted its 2024 demand growth forecast slightly upward to 920,000 barrels per day (bpd) but left its 2025 outlook nearly unchanged at 990,000 bpd. OPEC recently revised its global demand growth forecasts downward for 2024 and 2025, marking its fourth consecutive downgrade, citing economic weaknesses in China, India, and other regions. Adding further pressure, the U.S. dollar surged to a one-year high, driven by higher yields and the impact of Donald Trump's presidential election victory. The stronger dollar reduces the purchasing power of buyers using other currencies, weighing on oil prices. (ET)

Next Story
Infrastructure Urban

What Industry Wants!

The construction industry is gearing up for Budget 2025 with high expectations. As one of India’s key economic drivers, the sector is eagerly anticipating reforms and policies to address pressing challenges such as high input costs, funding gaps, and sustainability demands. Industry leaders across real estate, infrastructure, construction materials, and logistics have shared their wishlists, urging the government to focus on GST rationalization, increased CAPEX, and green initiatives.This year’s budget presents an opportunity for the government to not only tackle existing bottlenecks but a..

Next Story
Infrastructure Urban

Messe Stuttgart, Startup India Tie-Up to Boost Funding

The logistics market in India is poised for significant growth, with a projected revenue of $357.3 billion by 2030. Despite this huge potential, a recent McKinsey & Company report highlights the decline in logistics funding following the pandemic that remains a significant concern. After receiving unprecedented funding of $25.6 billion in 2021, venture capital investment in logistics startups fell sharply to $2.9 billion in 2023—a nearly 90 per cent decrease, marking the lowest since 2015. This pullback from investors is attributed to several factors, including high interest rates, a glo..

Next Story
Infrastructure Transport

JK Tyre Strengthens Road Safety Commitment

Reinforcing its unwavering commitment to road safety, JK Tyre & Industries, a leader in the tyre manufacturing industry, partnered with the Delhi Traffic Police to organise a comprehensive Road Safety Awareness Week. This initiative, held as part of National Road Safety Month (January 1–31, 2025) spearheaded by the Ministry of Road Transport and Highways (MoRTH), aimed to foster responsible driving habits and reduce road accidents. Under the theme ‘Sadak Suraksha Jeevan Raksha,’ the initiative commenced on January 16, 2025, at the Delhi Police Traffic Training Park, BKS. The program feat..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000