Oil prices edged higher at the start of the year, fueled by expectations of lower US crude stockpiles and optimism over global demand. Investors are betting on tighter supplies as preliminary data suggests a drawdown in inventories, signaling stronger-than-expected consumption during the holiday season. The market also remains supported by recent production cuts from OPEC+ nations, keeping a lid on surplus concerns.
Brent crude rose by 1.2%, while WTI crude advanced 1.4%, reflecting renewed bullish sentiment. Analysts note that the focus is now shifting to official inventory data from the US Energy Information Administration, expected later this week. Any significant inventory declines could reinforce upward momentum, though concerns about broader economic headwinds persist.
