Geopolitical risks partially weaken the pressure on unexpected inventory growth Crude oil futures closed slightly lower

News on January 21, the first rise in domestic crude oil supply in the United States in eight weeks weighed on energy prices, but geopolitical risk concerns offset some of the decline in oil prices, and crude oil futures closed slightly lower, but continued to remain near
nearly half a year high.

West Texas Intermediate (WTI) futures for February delivery fell 6 cents, or nearly 0.
1 percent, to close at $
86.
90 a barrel on the New York Mercantile Exchange on Thursday (Jan.
20).
February WTI futures expire
after today's close.
The new spot futures, the March WTI futures, closed down 25 cents, or 0.
3 percent, at $
85.
55 a barrel.

Phil Flynn, senior market analyst at Oil Price Futures Group, said U.
S.
crude oil supplies have increased
unexpectedly.
Although smaller than the figure released late Wednesday by the American Petroleum Institute, a trade group, a report released by the Strategic Petroleum Reserve "strengthened" crude supplies
.
According to the EIA, SPR inventories edged down by 1.
4 million barrels
.
Government agencies also reported on Thursday that U.
S.
crude inventories, excluding SPR, increased by 500,000 barrels
in the week ended Jan.
14.

A survey conducted by S&P Global Platts showed that analysts had previously predicted an average decline of 700,000 barrels
.
The American Petroleum Institute reported Wednesday that oil production rose by 1.
4 million barrels
, according to sources.
Since Monday is Martin Luther King Jr.
Day, this week's data has been delayed by one day
.

Matt Smith, Kpler's chief U.
S.
oil analyst, said the increase in crude inventories reported by the U.
S.
Energy Information Administration comes after seven consecutive weeks of falling crude inventories, while refinery production fell to its lowest level
since mid-November.
The EIA also reported that gasoline inventories increased by 5.
9 million barrels per week and distillate inventories decreased by 1.
4 million barrels
.

"Gasoline inventories are indeed higher than expected, but readily available gasoline supplies remain relatively tight
," Flynn said.
Gasoline supply is expected to increase this time this year, so "it's not surprising if you look at the week of gasoline demand, which is modestly rising
from last week's decline.
" ”

The S&P Global Platts survey expects gasoline supply to increase by 2.
4 million barrels and distillate inventories to decrease by 1.
1 million barrels
.
EIA data shows crude oil inventories
in Cushing, Oklahoma.
Last week, crude oil production at the New York Mercantile Exchange delivery center fell slightly by 1.
3 million barrels
.

Kpler's Smith said: "Gasoline inventories have increased significantly again, adding 35 million barrels in the last eight weeks, an increase of 17 percent
.
Distillate inventories fell
for the fifth consecutive week due to a strong rebound in implied demand.
”

Michael Hewson, chief market analyst at CMC Markets UK, said in an updated market note that overall oil prices "continue to be bullish and are approaching higher forecasts of $100 a barrel in the coming weeks"
.
"As the UK lifts recent pandemic restrictions, expectations for demand continue to rise as we head into spring, and supply chain restrictions are helping to limit the downward trend
," he said.

Oil traders also continue to monitor developments in Ukraine as US President Joe Biden said he believes Russian President Vladimir Putin will "take action against Ukraine" but does not want "all-out war,"
the BBC reported on Thursday.

Natural gas futures extended their recent decline, although the U.
S.
Energy Information Administration report showed that the weekly decline in U.
S.
natural gas supply was greater than the five-year average
.
The EIA reported Thursday that U.
S.
domestic natural gas supplies fell by 206 billion cubic feet
in the week ended Jan.
14.
By comparison, analysts at the S&P Global Platts Energy Intelligence survey expect China's natural gas supply to fall by an average of 193 billion cubic feet
.
Analysts expect China's natural gas supply to fall by an average of 167 billion cubic feet
over the next five years.