Oil prices slipped on rising supply prospects and economic weakness
Market sentiment was dampened by expectations of an inventory build in the United States, with analysts forecasting a 2.6 million-barrel addition to stockpiles in the previous week.
Oil prices declined on Wednesday, 27 February 2025, as expectations of rising global supply, coupled with weak economic data from Germany, weighed on market sentiment.
Brent crude fell by 49 cents to settle at $72.53 per barrel.
WTI dropped by 31 cents to close at $68.62 per barrel.
Market sentiment was dampened by expectations of an inventory build in the United States, with analysts forecasting a 2.6 million-barrel addition to stockpiles in the previous week. This marked the first time in nearly a year that inventories have risen for five consecutive weeks, signalling more ample near-term supply.
Adding to bearish pressures, weak economic indicators from Germany heightened concerns over energy demand. The German economy contracted by 0.2% in the final quarter of 2024, driven by weaker manufacturing and export activity.
Looking ahead, market participants remain vigilant toward potential shifts in OPEC+ supply. The United States’ efforts to foster peace between Ukraine and Russia continue to foreshadow a potential easing of sanctions on the latter nation. Meanwhile, in Nigeria, oil production remains elevated—rising to 1.8 million bpd from just a million less than two years ago.
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Written by: Derek Yong