Global oil prices fall after lowering risk of supply disruptions

Global oil prices on January 27 morning declined after a rise in price by 2% on January 26, markets continue to evaluate factors that may affect supply, Report informs.

The price of April futures for Brent crude fell by 0.85% to $87.99 per barrel, March futures for WTI fell in price by 0.87% to $86.59 per barrel.

The price of March futures for Brent oil exceeded $90 per barrel on January 26 for the first time since October 13, 2014, and oil has risen in price by almost 5% in two days.

Markets were weighing in last week’s data on lower US oil production and the fact that gasoline stocks there rose weaker than expected, and distillates fell more than expected.

At the same time, tensions between Russia and Ukraine may not cause noticeable disruptions in energy supplies, analysts at Goldman Sachs say. Such a factor is generally negative for oil prices.

Markets are also looking forward to the next OPEC+ meeting on February 2, which will decide on oil production in March. It is expected that OPEC+ will continue to increase production by the planned 400,000 barrels per day every month.