Following a decline the day before, oil prices remained relatively stable on Wednesday as predictions of a decline in global fuel demand were supported by a decline in U.S. crude stockpiles and the possibility of supply interruptions due to sanctions on Russian vessels.
After falling 1.4% the day before, Brent crude futures were up 2 cents to $79.94 a barrel. Following a 1.6% decline, U.S. West Texas Intermediate crude increased 12 cents, or 0.15%, to $77.62 per barrel.
Following the U.S. Energy Information Administration’s prediction that oil will face pressure over the next two years due to supply exceeding demand, prices fell on Tuesday.
However, the American Petroleum Institute’s late Tuesday report of a decline in crude stockpiles in the United States, the world’s largest oil consumer, and the expectations of supply disruptions following sanctions imposed by the U.S. Treasury Department on Russian oil producers and their so-called shadow fleet of tankers provided support to the market on Wednesday.
According to market reports that cited the API data, U.S. crude oil stocks dropped by 2.6 million barrels during the week ending January 10. They noted that while distillate stocks increased by 4.88 million barrels, gasoline inventories increased by 5.4 million barrels.
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