Crude Oil Prices See Significant Increase

On Friday, crude oil prices experienced a notable rise, with the market closely analyzing the latest report from the International Energy Agency (IEA). The report highlighted a decrease in U.S. crude oil inventories by one million barrels for the week ending January 3. This reduction, coupled with an increased demand for heating fuels due to colder weather conditions, has contributed to the upward trend in oil prices.

Impact of Political Decisions on Oil Market

Adding to the market dynamics, the intention of US President-elect Donald Trump to reverse the offshore drilling ban implemented by President Joe Biden has also played a significant role in influencing the market. This potential policy shift has added an extra layer of complexity to the oil market's future outlook.

Market Reaction and Price Movements

West Texas Intermediate (WTI) for February's settlements saw an increase of 2.23% at 4:35 am ET, reaching a price of $75.54 per barrel. Similarly, Brent for the same month's deliveries experienced a 2.11% rise, selling for $78.54 per barrel shortly after. These movements underscore the market's sensitivity to both demand forecasts and political developments.