Oil prices edged lower on Wednesday (Jan 29, 2025) as the US benchmark steadied after domestic crude stockpiles by the world’s top petroleum producers and consumers rose more than expected last week.
Brent crude futures were down 91 cents, or 1.2%, at $76.58 a barrel, while U.S. crude futures fell $1.15, or 1.6%, to $72.62, their lowest settlement so far in 2025.
US crude oil inventories rose by 3.46 million barrels last week as refiner intake fell for a third straight week, according to the Energy Information Administration.
According to Reuters, UBS analyst Giovanni Staunovo wrote that near-term oil trade should remain calm as investors digest the tariff threats, sanctions on Russian energy flows, and economic growth concerns in top-consuming countries.
Staunovo, however, expects prices to remain supported at current levels, and Trump-related news flows could drive volatility in the near term.
The US Federal Reserve kept interest rates steady across the country on Wednesday (29 Jan). Reuters believes the Fed has given little thought to plans to cut borrowing costs, which could boost economic activity and oil demand.
According to Reuters, traders are also looking forward to an OPEC+ ministerial meeting scheduled for February 3, which focuses on the group’s plan to increase supply from April. Incumbent Trump last week called on OPEC+ to lower oil prices. The group has yet to respond to Trump’s response, but representatives said a policy change is unlikely at the February meeting.
Meanwhile, Libya’s National Oil Corporation said on Tuesday that supply concerns had eased as export operations continued as normal after it held talks with protesters who demanded a halt to loading at one of the country’s main oil ports.
source: Reuters
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