Oil Prices Decline as U.S. Stockpiles Grow and Libya Maintains Stability
Oil prices fell on January 29, 2025, as rising U.S. crude stockpiles and improved stability in Libya’s oil production weighed on market sentiment. Brent crude dropped by 2.5% to 75 per barrel, while West Texas Intermediate (WTI) declined by 2.870 per barrel.
The U.S. Energy Information Administration (EIA) reported a significant increase in crude inventories, with stockpiles rising by 6 million barrels last week. This surge in supply has raised concerns about oversupply in the market, particularly as global demand remains subdued.
Meanwhile, Libya’s oil production has stabilized following months of political unrest, adding further pressure to oil prices. The North African nation, a key OPEC member, has ramped up output to 1.2 million barrels per day, its highest level in over a year.
“Rising U.S. stockpiles and increased Libyan production are creating a bearish environment for oil prices,” said energy analyst Sarah Lee. “Unless we see a significant uptick in global demand, prices are likely to remain under pressure.”
The dip in oil prices comes amid ongoing geopolitical tensions in the Middle East and uncertainty over OPEC+ production policies. Analysts warn that further price declines could prompt OPEC+ to consider additional output cuts to stabilize the market.
