Oil Prices Rise as US Oil Inventories Drop Unexpectedly, Set to Record Lowest Level Since 2020

Riyadh, 2024 December 29 – In a surprising turn of events, oil prices saw an upward trend on Friday following the unexpected drop in US oil inventories last week. Brent crude for March delivery rose by 0.49% to reach $77.53 per barrel at 9:07 am Makkah time. Similarly, WTI contracts experienced a gain of 0.46%, reaching $72.1 per barrel. However, both benchmarks are expected to record their lowest levels since 2020 with an anticipated loss of 10%.

According to data from the US Energy Information Administration (EIA), US crude oil inventories fell by a significant 7.1 million barrels in the week ending December 22nd—surpassing expectations for a decline of only 2.7 million barrels.

The global efforts made by governments and central banks throughout the year to combat inflation have played a role in limiting the rise in oil prices thus far in 2023. However, analysts predict that potential interest-rate cuts implemented by major importing countries could fuel demand and contribute to price increases in the year ahead.

As Mediaone TV continues its commitment to delivering accurate and timely news updates across various sectors including energy and finance, we will closely monitor developments within the oil market and provide comprehensive coverage on factors influencing price മൂവേമെന്റ്സ്.