Oil Prices Fluctuate as Rising U.S. Inventories Clash With Supply Concerns

Global oil markets face mixed signals with increased U.S. fuel stockpiles, tightening OPEC production, and strong seasonal demand.

U.S. crude inventories fell by nearly 1 million barrels last week, reaching a decade-low at the Cushing, Oklahoma hub, while gasoline and distillate stockpiles surged significantly beyond expectations.
OPEC production declined in December due to maintenance in the UAE and lower Russian output, raising concerns over tightening global supply.
Brent crude futures are trading near $76-$77 per barrel, while WTI hovers around $73-$75, influenced by a stronger U.S. dollar and fluctuating market sentiment.
Analysts project robust January demand driven by colder-than-expected winter conditions and increased travel in China for the Lunar New Year.
Market forecasts suggest crude prices may remain in the $70 range throughout 2025, with potential oversupply from non-OPEC producers tempering price growth.