Oil is consolidating in the area of local lows

Oil quotes continue to remain in the area of local lows, trading in a narrow sideways range of $76-77 per barrel. The current Brent oil quote is $77.18, North American WTI oil is trading near $72.75 per barrel.

Quotes are growing weakly at the end of the week after a decline that lasted five consecutive sessions. Yesterday, Brent ended trading at the lowest since December 24 last year ($75.74), WTI – since December 21 ($71.34).

Traders are still assessing the possible consequences of the price ceiling for Russian oil and the prospects for fuel demand in the world. Last weekend, OPEC+ decided not to change production quotas, so the topic of demand remains one of the most relevant.

In addition, the quotes were influenced by the report of the US Department of Energy, according to which crude oil reserves in the country decreased significantly – by 5.187 million barrels. At the same time, gasoline and distillate stocks, on the contrary, unexpectedly increased. Experts note that this report indicates a slight weakening of consumer demand as we approach the end of the year.

Today, prices are supported by the news about the suspension of the American Keystone oil pipeline with a capacity of 610 thousand barrels per day due to an oil leak in Nebraska. And since this is the most important source of raw materials supplies for oil refineries on the Gulf coast, oil quotes will receive support until the problem is eliminated.