Oil prices stable, Brent holds above $82

Oil drilling rigs

Oil prices were stable in early trade today, Jan. 16, after gaining nearly 3% the day before on a larger-than-expected drop in US crude inventories and Washington targeting Moscow with broader sanctions.

International benchmark Brent crude was trading at $82.09 a barrel, at 09:26 am Makkah time. It gained 2.65% in the previous session.

West Texas Intermediate (WTI) crude rose 0.14% to $80.15 a barrel, after adding 3.3% yesterday.

Oil remained on positive trajectory after data showed a decrease in crude inventories in the US by two million barrels during the week ended Jan. 10, compared to expectations of a decrease of 1.1 million barrels.

Meanwhile, the US imposed a wide-ranging package of sanctions on the Russian oil sector on Jan. 10, sparking supply concerns in China and India. This has pushed the two countries towards other markets to meet their needs.

Oil gains were capped today by the rise in gasoline stocks in the US by 5.9 million barrels, and the increase in distillate stocks by about 3.1 million barrels.

In addition, Israel and the Palestinian Hamas group reached a ceasefire agreement yesterday and exchanged hostages and prisoners, which heralds an end to geopolitical tensions in the Middle East.

JP Morgan analysts indicated in a note quoted by Reuters that global oil demand grew by 1.2 million barrels per day during the first two weeks of 2025 compared to the same period last year, which was slightly below expectations.