Oil has been stuck in a narrow range since mid-October, with Brent posting a modest annual decline and WTI ending 2024 little changed. — Bloomberg
NEW YORK: Oil edged higher in the first session of the new year after an industry report is signalling US crude stockpiles continue to shrink.
Brent climbed for a fourth session to trade near US$75 a barrel and West Texas Intermediate (WTI) was around US$72.
A report from the American Petroleum Institute showed inventories fell by 1.4 million barrels last week, which would be a sixth straight draw if confirmed by government data later this week.
Oil has been stuck in a narrow range since mid-October, with Brent posting a modest annual decline and WTI ending 2024 little changed.
Investors are bracing for a glut this year, making it harder for Opec+ to revive idled production, and the unpredictability of a second presidential term for Donald Trump.
“The risks for Brent are to the upside through the first quarter, with a push into the US$75 to US$80 region likely,” said Robert Rennie, the head of commodity and carbon research for Westpac Banking Corp.
“The second half of the year looks to be about the risks of rising supply and weak demand,” Rennie added.
Hostilities in the Middle East and Ukraine are persisting and a flare-up in either region could potentially provide some short-term support for oil prices. — Bloomberg
