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Crude futures closed higher on Wednesday (Jan. 26), while Brent crude futures rose above $90 during the day on concerns that tensions in Ukraine could hurt oil supplies.
- WTI crude futures were up $1.75, or 2%, at $87.35 a barrel.
- BRENT crude futures were up $1.76, or 2%, at $89.96 a barrel.
Brent crude futures rose above $90 a barrel in a day for the first time in eight years, while Goldman Sachs, Morgan Stanley and JPMorgan forecast oil prices would top $100 a barrel this year.
The focus remains on the Ukraine crisis, which continues to show hardened fronts on the part of Western countries. The aggressive noises from the U.S. government comes to Russia so far only with reservations. Nevertheless, the Kremlin has warned in a statement that Russia will react quickly if the U.S. and its allies reject Russia’s demands and continue to pursue a tough policy.
Russia is reported by Mainstream to have filed a lawsuit against the United States and the West to ensure that NATO will not take in Ukraine and other countries of the former Soviet Union. The United States and its allies are to withdraw their troops from the countries of the former Soviet Union.
OPEC+ will meet again on February 2 to discuss further production policy. The oil market was also supported by expectations that OPEC and OPEC+ will stick to their original agreement to increase oil production by 400,000 barrels per day when they meet on February 2.
The EIA reported that U.S. crude oil inventories rose by 2.4 million barrels last week. Crude oil inventories at Cushing Oklahoma, the delivery center for U.S. crude oil, fell by 1.8 million barrels, gasoline inventories rose by 1.3 million barrels, and distillate inventories, including heating oil and diesel, fell by 2.8 million barrels last week.
API, a U.S. oil industry association, had previously announced that U.S. crude oil inventories fell by 872,000 barrels last week.
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Thursday, January 27, 2022