Egypt's New Oil Reserves Impact Global Markets

In a significant development, Egypt's Petroleum Ministry has confirmed the discovery of approximately 8 million barrels of oil reserves in the East Crystal-1 well, located in the Gulf of Suez. This discovery is expected to be exploited by the Gulf of Suez Petroleum Company, with an anticipated production rate of around 5,000 barrels per day.

US Crude Oil Inventories Rise

Simultaneously, reports indicate a 2.86 million barrel increase in US crude oil inventories for the week ending January 24. This surge contributes to the shifting dynamics of global oil markets.

Market Reaction

Following these announcements, crude oil prices experienced a downturn. The West Texas Intermediate for March deliveries saw a decrease of 1.04%, trading at $72.97 per barrel at 6:04 am ET. Similarly, Brent for March settlements fell by 1.14%, reaching $76.62 per barrel shortly thereafter.