HOUSTON: Oil prices closed 0.5% higher on Wednesday on optimism around tighter supply after a temporary shutdown at two large fields in Kazakhstan and as low volume of Venezuelan oil exports highlighted slow progress in reversing output cuts in the South American country. Reuters reported on Wednesday that the operator of the Tengiz oilfield, TCO, has declared force majeure on crude oil deliveries into the CPC pipeline system, citing a TCO letter. US crude oil and gasoline stockpiles were expected to have risen by about 1.7 million barrels last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Tuesday. The International Energy Agency also revised its 2026 global oil demand growth forecasts higher on Wednesday in its latest monthly oil market report, suggesting a slightly narrower surplus for the market this year. The increased geopolitical tensions, which add pressure to the oil markets as tariffs could slow economic growth, prompted risk-off sentiment, said Giovanni Staunovo, an analyst at UBS.

Source: The Star January 22, 2026 01:34 UTC