Oil closes higher amid positive demand forecasts, supply disruptions

Oil drilling rigs

Oil prices rose at the close of trading today, Jan. 21, as geopolitical tensions eased and following the release of the International Energy Agency's (IEA) forecasts on global demand growth.

Brent crude futures for March delivery rose 0.50% or 32 cents to $65.24 a barrel. WTI crude oil futures for March delivery – the most active contract – rose by 0.4% or 26 cents to $60.62 a barrel.

This comes after both crude oil benchmarks closed up by about 1.5% during yesterday's session, following Kazakhstan's suspension of production at the Tengiz and Korolev oil fields due to energy distribution problems.

On the other hand, the IEA predicted today that global oil demand growth will accelerate in 2026, and said in its report that the market still faces a surplus in supply, which helps to reduce the impact of geopolitical risks associated with Iran, Russia and Venezuela.

Trade concerns eased after US President Donald Trump said he did not intend to use force to annex Greenland, before announcing late Wednesday that a framework agreement had been reached with NATO regarding the island.

Ship tracking data and documents from the state oil company showed that Venezuelan oil exports, under a major supply agreement with the US, reached about 7.8 million barrels by Wednesday, a slower pace than expected, Reuters reported.