Oil Prices Hold Steady Amidst Supply Fears

21 Nov 2024 , 11:00 AM

Due to supply issues brought on by rising geopolitical tensions in the midst of the ongoing conflict between Russia and Ukraine, oil prices marginally increased on Thursday.

The January Brent crude futures price increased by 28 cents, or 0.4%, to $73.09. At $69.03, U.S. West Texas Intermediate crude futures increased 28 cents, or 0.4%, for January.

A day after firing U.S. ATACMS missiles, Ukraine launched a barrage of British Storm Shadow cruise missiles into Russia on Wednesday, the most recent Western weapon it has been authorised to employ against Russian targets.

According to Moscow, a significant escalation in the confrontation would occur if Western weaponry were used to attack Russian territory located far from the border. The 1,000th day of Moscow’s invasion began this week, and Kyiv claims it needs the ability to defend itself by attacking Russian rear positions.

In contrast to analysts’ predictions of a 138,000-barrel increase in a Reuters poll, the Energy Information Administration reported that U.S. oil stocks increased by 545,000 barrels to 430.3 million barrels in the week ending November 15.

Last week, distillate stockpiles showed a higher-than-expected decline, while petrol inventories increased more than anticipated.

Following a power interruption, Norway’s Equinor said that it has fully recovered its output capacity at the Johan Sverdrup oilfield in the North Sea, adding to the supply.

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