Brent Slumps to $76 Per Barrel as US Crude Stockpiles Rise

Also, price of the US West Texas Intermediate (WTI) crude grade slumped by $1.15 or 1.6 per cent to $72.62 per barrel as the US Energy Information Administration revealed that crude oil inventories in the country grew by 3.5 million barrels in the week ending January 24.

On Tuesday, the API issued its latest estimates on crude oil and crude oil products inventories, showing a rise of 2.86 million barrels for the week ending January 24.

Market analysts noted that near-term oil trade should remain bearish as investors digest the tariff threats, sanctions on Russian energy flows, and economic growth concerns in top consuming nations

The White House on Tuesday reaffirmed President Donald Trump’s plan to impose 25 per cent tariffs on imports from Canada and Mexico from February 1.

Traders are also looking ahead to the ministerial meeting of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for February 3, with the group’s plan to increase supply from April in focus.

President Trump called on OPEC+ to lower oil prices last week but the group has yet to respond, but Reuters reported that delegates said policy changes are unlikely at the February meeting.

For analysts at Standard Chartered, OPEC has limited power to end the Russia-Ukraine war immediately through a reduction in the oil price, with OPEC ministers likely viewing this strategy as very inefficient.

OPEC+ members are currently holding back 5.86 million barrels per day of production, or about 5.7 per cent of global demand, after making a series of cuts since 2022 to support the market.

The group plans to start raising production in April, following several delays due to weak demand.

Meanwhile, the US Federal Reserve held interest rates steady on Wednesday and the Chairman if the US central bank, Mr Jerome Powell, said there would be no rush to cut them again until inflation and jobs data made it appropriate.

On the supply front, Libya’s National Oil Corporation said export activity was running normally after it held talks with protesters who had demanded a halt to loadings at one of the country’s main oil ports.