Oil Prices Fall as Gas Supplies Grow

9 Jan 2025 , 09:50 AM

Pressured by significant increases in U.S. fuel inventories last week, oil prices dropped on Thursday, continuing losses from the day before, but the decrease was restrained by worries about tighter supply from Russia and OPEC members.

Brent crude futures dropped 28 cents, or 0.4%, to $75.88 per barrel. At $73.02, U.S. West Texas Intermediate crude futures fell 30 cents, or 0.4%.

Due to a stronger currency and a larger-than-expected increase in U.S. fuel inventories, both benchmarks saw price declines of more than 1% on Wednesday.

Instead of increasing by 600,000 barrels as anticipated, distillate stockpiles increased by 6.1 million barrels during the week to 128.9 million barrels.

In the meantime, worries over a tightening supply and hopes for a resurgence in Chinese demand caused the Brent futures first-month contract premium to the six-month contract to hit its largest level since August 2024 on Wednesday.

According to a Reuters survey, oil production from the Organization of the Petroleum Exporting Countries decreased in December following two months of growth. Gains elsewhere in the company and an increase in Nigerian output were counterbalanced by field maintenance in the United Arab Emirates.

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