.jpg)
2 hours ago
1
Oil extended a powerful early-year advance on mounting risks to global supplies, and as commercial crude inventories in the US posted their longest run of declines since 2021.
Author of the article:
Bloomberg News
Yongchang Chin
Published Jan 15, 2025 • 1 minute read
(Bloomberg) — Oil extended a powerful early-year advance on mounting risks to global supplies, and as commercial crude inventories in the US posted their longest run of declines since 2021.
Article content
Article content
West Texas Intermediate rose above $80 a barrel after climbing more than 3% on Wednesday, to hit the highest since July. Brent closed near $82. US sanctions last week against Russia’s energy industry have rattled the market, with the International Energy Agency warning they could “significantly disrupt” the nation’s supply and distribution chains.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Already, long-standing buyers of Russian crudes are looking elsewhere, while the amount of oil stranded off the Chinese coast has swelled as traders, refiners and shippers try and avoid being caught up in the curbs. India is rushing to pay for its existing Russian oil purchases.
Crude has rallied by around 12% since the start of the year, helped by a cold Northern Hemisphere winter fanning demand, the steady fall in US inventories, and multiple risks to shipments. In addition to the curbs against Russia, traders are concerned the incoming Trump administration may both tighten sanctions against Iran and impose trade levies that disrupt oil exports and risk drawing retaliatory measures.
In its monthly market snapshot on Wednesday, the IEA said the 160 tankers sanctioned by the US last week had shipped more than 1.6 million barrels a day of Russian oil in 2024, about 22% of the country’s seaborne exports. It also noted that previous rounds of curbs had been “highly effective, reducing the activity of designated tankers by 90%.”
In the US, oil inventories dropped for an eighth week to hit the lowest since April 2022, according to official data released on Wednesday. They are at a six-year seasonal low.
To get Bloomberg’s Energy Daily newsletter in your inbox, click here.
Article content
English (US)