The Brent crude market slipped below the $75 mark, a level not seen since July 6, 2023, with the move reflected in ICE trading data. The session showed February futures dipping to about $75.8 per barrel, down roughly 3.17 percent as of 19:19 Moscow time. Meanwhile, January contracts for WTI slipped about 3.87 percent to $69.52 per barrel, signaling a broader 3 percent slide in global oil prices.
Market observers at Bloomberg identified this downturn as a response to expectations of renewed supply pressure, noting that US crude exports are nearing a record throughput of around 6 million barrels per day according to tanker-tracking sources. This backdrop of abundant supply adds pressure even as market participants weigh the effects of policy moves from major producers. [Bloomberg]
Even with OPEC+ agreeing to further reduce production, traders question how faithfully the agreed cuts will be followed by member nations. Analysts point to the possibility that the official Energy Information Administration report, which highlighted a 4.63 million barrel drawdown in U.S. oil inventories, failed to reverse the downward momentum in prices. [Bloomberg]
The geopolitical landscape remains unsettled as the United States, acting alongside the G7, signals intent to curb Russia’s oil exports, a move that could tighten supply dynamics on the world stage. Market watchers are assessing how these sanctions might interact with existing supply fundamentals and how they will influence prices in the near term. [Bloomberg]
Earlier commentary from U.S. officials referenced gaps in the current sanctions regime against Russia’s oil sector, sparking renewed debate about the potential effectiveness and enforcement of such measures in a rapidly evolving energy market. [Bloomberg]