Crude Oil Prices Drop Following Egypt's New Discovery

Crude oil prices experienced a 1% decline on Wednesday, following an announcement by Egypt's Petroleum Ministry about the discovery of approximately 8 million barrels of oil reserves in the East Crystal-1 well, located in the Gulf of Suez. The Gulf of Suez Petroleum Company is set to exploit this well, with an anticipated production rate of around 5,000 barrels per day.

In related news, crude oil inventories in the United States saw an increase of 2.86 million barrels in the week ending January 24, adding to the market's supply concerns.

Market Reaction to the News

As a direct response to these developments, the West Texas Intermediate for March deliveries fell by 1.04% to $72.97 per barrel at 6:04 am ET. Similarly, Brent crude for March settlements dropped by 1.14% to $76.62 per barrel shortly after.