Oil Prices Hold Steady Amid Supply and Demand Uncertainty
Oil prices saw minimal changes on Tuesday, recovering from earlier losses as markets weighed conflicting factors. Brent futures rose 26 cents to settle at $100.58 a barrel, while US West Texas Intermediate (WTI) crude rose one cent to $89.44. The market considered increased Middle Eastern crude exports and a planned Group of Seven (G7) release of emergency diesel and crude stockpiles against supply concerns from attacks by Yemen’s Houthis.
Vitol CEO noted that around 12 million barrels per day of crude oil and 2 million barrels per day of refined products had left the Middle East in the past week. Saudi Energy Minister Prince Abdulaziz bin Salman reported that oil pumped through the East-West Pipeline had reached 5.8 million barrels. However, price declines were limited by potential supply disruptions, as Saudi airports in Jazan and Najran were targeted in recent attacks.
Ukraine’s President Volodymyr Zelenskiy warned of a possible massive Russian attack, while a cyclone in the Gulf of Mexico threatened to disrupt US oil production. The International Energy Agency was set to discuss a diesel stock release to address shortages and high prices. The US Energy Information Administration projected a decline in world petroleum production from 106.3 million barrels per day in 2025 to 101.1 million in 2026, with a rebound expected in 2027.
Analysts estimated that US energy firms added 1.7 million barrels of crude to storage last week, marking the first time since August that stocks increased for three consecutive weeks. The market awaited weekly storage reports from the American Petroleum Institute and the EIA for further insights.