On Wednesday (January 25), international oil prices were under pressure. Although optimism about the recovery of Chinese demand and expectations that major producers will maintain current production policies are good for the oil market, a larger-than-expected increase in U.S. oil inventories hindered the rebound in oil prices. NYMEX crude oil looked at $79.03.
At 16:59 Beijing time, NYMEX crude oil futures fell 0.56% to $79.68/barrel; ICE Brent crude futures fell 0.51% to $85.80/barrel.
On the supply side, global crude oil production should remain stable in the medium term as OPEC+ is likely to maintain the group’s current oil output policy when it meets next week, several OPEC+ sources said on Tuesday. .
Due to the weak economic outlook, OPEC+ decided in October last year to cut production by 2 million barrels per day from November and will continue until 2023. But the reopening of the Chinese economy could unleash a wave of pent-up demand in the future, potentially supporting market sentiment.
According to data released overnight by the American Petroleum Institute (API), U.S. crude oil inventories rose by 3.378 million barrels in the week ended January 20, far exceeding the market’s previous forecast of 1.6 million barrels. The official U.S. Energy Information Administration (EIA) inventory data will be released at 23:30 Beijing time on Wednesday.
However, Hiroyuki Kikukawa, general manager of research at Nissan Securities, said: “This is only temporary because the supply disruption caused by the cold snap in the U.S. a few weeks ago will only affect the data in the next few weeks.” Between $75 and $85 a barrel.
On the hourly chart, NYMEX crude oil started a downward c-wave trend from US$82.62, and is expected to fall below the 76.4% target of US$79.41, and to test the 85.4% target of US$79.03. The c wave is the sub-wave of the adjustment (ii) wave that started at $82.66.