Crude oil futures closed lower Wednesday (Jan. 19) following the explosion of an oil pipeline carrying oil from Iraq through Turkey. The International Energy Agency (IEA) has raised its forecast for global oil demand this year, which makes oil prices even stronger.
- WTI crude futures were up $1.53, or 1.8%, at $86.96 a barrel.
- BRENT crude futures were up 93 cents, or 1.1%, at $88.44 a barrel.
Crude oil futures continue to rise after an oil pipeline transporting oil from Iraq through Turkey exploded. According to reports, the Turkish state pipeline operator BOTAS has stopped the flow of oil through the Kirkuk-Seyhan pipeline for the time being. The oil flow can continue as soon as all precautionary measures have been taken, according to BOTAS. The explosion took place near the province of Kahramanmaras in southeastern Turkey.
The Kirkuk-Seyhan pipeline is a 600-mile (970 km) pipeline that transports oil from the Iraqi city of Kirkuk to the Turkish city of Seyhan for sale on the world market. It is considered Iraq’s largest crude oil export route.
The market continues to be supported by a projected increase in oil demand of 200,000 barrels per day to 3.3 million barrels per day in 2022.
Weekly U.S. API crude oil inventory report showed an unexpected 1.4 million barrel increase in oil inventories. Previously, a drop of over 1 million barrels was estimated.
Investors are looking ahead today to the weekly oil inventory report from the U.S. Energy Information Administration (EIA).
The Spot Market is Open
Thursday, January 20, 2022