Oil prices fell more than 1 percent on Wednesday amid persistent concerns about global oversupply and receding risks from Kazakh production halt.
Benchmark Brent crude futures fell 1.5 percent to $63.98 a barrel, while WTI crude futures were down 1.5 percent at $59.48.
In its latest monthly report, the International Energy Agency (IEA) has revised its 2026 average oil demand growth forecast upward to 930,000 barrels per day from 860,000 BPD, reflecting more optimistic expectations for global oil consumption growth and strengthening market fundamentals for 2026.
At the same time, the agency increased its projection for world oil supply growth in 2026 to 2.5 million bpd from 2.4 million bpd forecast earlier, warning that a “significant surplus” is likely to emerge in the first quarter of 2026 unless major supply disruptions occur.
Investors also assessed renewed trade tensions between the United States and Europe and looked ahead to U.S. President Donald Trump’s speech at Davos for direction.
As Greenland tensions ratchet up, U.S. Treasury Secretary Scott Bessant criticized European countries for purchasing Russian oil and gas, claiming the region’s governments had funded Russian President Vladimir Putin’s war on Ukraine.
Meanwhile, the American Petroleum Institute’s report on U.S. oil inventories will be published on Jan. 22 due to a holiday in the U.S. for Martin Luther King Jr. Day at the start of the week.
Market Analysis
Oil Prices Decline As IEA Warns Of Supply Surplus
2026-01-21 09:39:08
