Oil prices rose on optimistic expectations for global oil demand and supply risks related to the ongoing conflict in the Red Sea, Anatolian News Agency reported.
International benchmark Brent crude was trading at $79.12 per barrel, up 0.02 percent from the closing price of $79.10 per barrel in the previous trading session on January 18.
US benchmark West Texas Intermediate (WTI) was trading at the same time at USD 74.06 per barrel, up 0.14% from the January 18 closing price of USD 73.95 per barrel.
The rise in prices of both benchmarks was slightly dampened by forecasts by the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) for an increase in global oil production amid escalating tensions in the Red Sea.
According to the latest IEA report released on January 18, global oil supply is expected to increase by up to 1.5 million barrels per day (bpd) to reach a record high of 103.5 mb/d this year, putting downward pressure on prices.
However, uncertainty in the demand outlook of the world's largest oil consumer, the US, has supported the price rise.
Data released by the US Energy Information Administration showed that US commercial crude inventories fell by about 2.5 million barrels to 429.9 million barrels, compared with the American Petroleum Institute's expectations of an increase of about 483,000 barrels.
Despite the decline in US crude oil stocks, the country's gasoline stocks increased by around 3.1 million barrels to 248.1 million barrels during the same period, raising doubts about a recovery in demand.
At the same time, escalating tensions in the Red Sea limited further price declines and heightened concerns that disruptions in the global supply chain would adversely affect energy supplies.
On 18 January, the Yemeni Houthi group announced that it had struck a US ship in the Gulf of Aden. A Houthi military spokesman said the attack was in response to US and UK aggression against Yemen and to pressure Israel to stop its deadly war in the Gaza Strip./BGNES
