Egypt's New Oil Reserves Discovery

In a significant development, Egypt's Petroleum Ministry announced 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 set to be exploited by the Gulf of Suez Petroleum Company, with an expected production rate of around 5,000 barrels per day.

Impact on Crude Oil Prices

Following the announcement, crude oil prices experienced a downturn, dropping by 1% on Wednesday. The West Texas Intermediate for March deliveries decreased by 1.04%, trading at $72.97 per barrel at 6:04 am ET. Similarly, Brent crude for March settlements saw a decline of 1.14%, reaching $76.62 per barrel shortly after.

US Crude Oil Inventories Rise

In related news, the United States reported an increase in crude oil inventories, with a growth of 2.86 million barrels in the week ending January 24. This rise in inventories further contributes to the fluctuating dynamics of the global oil market.