Lower-than-expected build in US crude stocks keeps Brent steady

Front-month ICE Brent has increased by $0.38/bbl on the day, to $86.09/bbl at 09.00 GMT.

PHOTO: American flag on an oil refinery. Getty Images

Upward pressure:

Brent crude has found support from US Energy Information Administration (EIA) data that shows a lower-than-expected build in commercial US crude inventories.

Although the EIA data shows a build of 533,000 bbls in the week ending 20 January, it is far below the American Petroleum Institute (API) earlier projection of a 3.4 million bbl-build.

ING analysts Warren Patterson and Ewa Manthey believe that OPEC+'s Joint Ministerial Monitoring Committee is likely to suggest maintaining the group's current production levels “given the level of uncertainty” in the market.

As the EU's sanctions and price caps on refined Russian oil products are set to come into effect on 5 February, oil market experts are also watching out for future production cuts from Russia.

Downward pressure:

Economists polled by Reuters have predicted that global economic growth will barely surpass 2% in 2023, along with warnings that the prediction could be revised downward.

World Bank President David Malpass has told British news network Sky News that “this period of slow growth for the world may last into 2023-24.”

By Konica Bhatt

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