Oil Prices Rise Amid Job Openings, But Oversupply Looms Ahead

Oil prices went up on Wednesday because supplies from Russia and OPEC (a group of oil-producing countries) are getting smaller. At the same time, news showed that more jobs were available in the U.S., which means people might buy more oil as the economy gets better.

Brent crude oil costs $77.37 a barrel, which is a 32-cent increase (0.42%) from before. U.S. West Texas Intermediate crude is at $74.67 a barrel, rising by 42 cents (0.57%).

A recent survey found that OPEC’s oil production fell in December after rising for two months. Maintenance work in the United Arab Emirates balanced out an increase in oil production from Nigeria and other countries in OPEC. In Russia, oil production was below their goal for December, with an average of 8.971 million barrels a day.

On the job front, the number of job openings in the U.S. increased in November. Layoffs were low, and fewer workers were quitting, according to the Job Openings and Labor Turnover Survey (JOLTS). This means the job market is getting back to normal before the pandemic, according to experts.

In the U.S., crude oil storage levels dropped last week, while fuel supplies went up, according to information from the American Petroleum Institute.

Looking ahead, analysts predict that oil prices may drop on average this year, especially in 2024, due to more production from non-OPEC countries. They expect Brent crude to average $76 a barrel in 2025, down from $80 a barrel in 2024. This is based on data suggesting that oil supply will be more than demand, creating a surplus of about 485,000 barrels per day.