15 Jan 2025

• WTI price posts modest gains near $76.75 in Wednesday’s early Asian session. 
• US EIA expected oil demand to steady in 2025 and 2026.
• US crude oil inventories dropped by 2.6 million barrels last week, according to the API.
• West Texas Intermediate (WTI), the benchmark for US crude oil, is currently trading at approximately $76.75 on Wednesday. The price of WTI has seen a slight increase as new US sanctions on Russian oil exports are anticipated to tighten global supply. However, the potential for further gains in oil prices may be constrained following a forecast from a US government agency indicating stable oil demand in the US for 2025.
  
  Last week, the Biden administration implemented new sanctions targeting Russia's oil sector, which included blacklisting nearly 200 vessels associated with its shadow fleet and focusing on Russian oil producers Gazprom Neft and Surgutneftegas. The rising apprehensions regarding supply disruptions may provide short-term support for WTI.
  
  Conversely, the WTI price may encounter selling pressure as global oil production is expected to exceed demand, as reported by the US Energy Information Administration (EIA) on Tuesday. The EIA projected that US oil demand would hold steady at 20.5 million barrels per day (bpd) in both 2025 and 2026, while domestic oil production is anticipated to rise to 13.55 million bpd, an increase from the previous estimate of 13.52 million bpd for this year.
  
  Additionally, US crude inventories experienced a smaller-than-expected decline last week, indicating weaker demand for WTI. The American Petroleum Institute (API) reported that crude oil stockpiles in the United States decreased by 2.6 million barrels for the week ending January 10, compared to a drop of 4.022 million barrels the previous week. Market expectations had estimated a reduction of 3.5 million barrels.
  
  Later on Wednesday, oil traders will be attentive to the US Consumer Price Index (CPI) inflation data for December, which may provide new market direction. A softer-than-anticipated result could lead to a decline in the US dollar, thereby potentially increasing the price of this USD-denominated commodity.