A moderate decline in oil prices gave way to a sharp decline on Friday, January 22, with the price of Brent sliding 1.57%, to $54.98/bbl, while WTI dropped 1.85%, to $52.01/bbl.
The downturn was sparked by the EIA’s weekly petroleum status report that showed an unexpected 4.35 mln bbl build, although the market, on the contrary, expected a 1.17 mln bbl drawdown as demand-side fears re-emerged due to ongoing lockdowns across Europe.
Crude futures opened slightly in the red this morning, but are back on the rise, likely ahead of the virtual proceedings of the Davos World Economic Forum in Davos. Brent is up 0.99%, and WTI is 1.07% higher. Our Brent forecast for today is $54.8-56/bbl.