"Red Sea Risks Outweigh US Stockpile Report, Oil Prices Hold Gains"
Oil prices rose as US crude production is expected to grow more slowly this year, easing concerns of oversupply, with the US pumping a record 13.3 million barrels per day in December but not expected to surpass this level until early 2025. The Energy Information Agency estimates a 170,000 barrels per day growth in domestic oil output this year, down from the previous forecast of 290,000 bpd, and predicts a global crude oil supply deficit of 120,000 barrels per day in 2025. Occidental Petroleum CEO Vicki Hollub warned of a major supply shortage by the end of 2025 due to insufficient crude reserves replacement. Meanwhile, oil traders are monitoring Middle East developments and potential US strikes against Iranian forces.
