By Anadolu Agency
January 8, 2025 2:28 pmOil prices rose on Wednesday, driven by stronger-than-expected demand indicators in the US, the world’s largest oil consumer, and President Joe Biden’s ban on offshore drilling along most US coastlines, while expectations surrounding president-elect Donald Trump’s pro-fossil fuel policies tempered further price gains.
The international benchmark Brent crude rose by 0.5%, reaching $77.24 per barrel at 11.04 p.m. local time (0804 GMT), up from $76.81 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) increased by 0.6%, rising to $74.23 per barrel, compared to its prior session close of $73.76.
Projections for weekly crude oil inventories from the American Petroleum Institute (API) indicated a larger-than-expected drawdown in commercial crude stocks for the week ending January 3.
API data indicated a decline of 4.02 million barrels, surpassing market expectations of a 250,000 barrel fall. The decrease in stocks suggests strengthening demand in the US.
The US Energy Information Administration will release official inventory data later on Wednesday.
Expectations that Trump’s policies will prioritize boosting fossil fuel production following his inauguration on January 20, are capping further price gains.
President Joe Biden announced Monday that he is moving to ban new offshore oil and gas drilling along most US coastlines.
The executive action will prevent new oil and gas leasing across 625 million acres of US ocean.
Trump vowed to quickly revoke outgoing president Biden’s ban on offshore oil and gas drilling.
‘Banning offshore drilling will not stand. I will reverse it immediately,’ Trump told reporters Tuesday in the state of Florida, one day after the 2024 election results were certified by Congress.
‘We’re going to be drilling in a lot of other locations, and the energy costs are going to come way down,’ he said.
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