Oil rises 2% amid weak supply outlook

Oil drilling rigs

Oil close higher today, Jan. 9, after data showed a decline in Russian crude supplies as part of the reductions plan pledged by OPEC+ to stabilize the markets, amid continuing geopolitical tensions in the Middle East.

Brent crude for March delivery rose 1.95%, or $1.47, to close at $77.59 per barrel on Jan. 9. WTI crude for February delivery jumped 2%, or $1.47, to $72.24 per barrel.

Tanker tracking data monitored by Bloomberg showed that about 3.34 million barrels of crude oil were shipped per day from Russian ports during the four weeks ended Jan. 7, while the more volatile weekly average fell by 500,000 barrels per day to 3.28 million.

The US Energy Information Administration (EIA) said that the average price of Brent crude will reach $82 per barrel in 2024 and $79 per barrel in 2025, indicating that it expects OPEC+ to produce less than the announced targets in 2024, coinciding with US crude production rising to 13.2 million barrels per day.

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the EIA is scheduled to issue official data on inventories on Jan. 10, amid expectations that crude inventories will fall by 200,000 barrels.