Oil prices hit a new half-year high due to sanctions against Russia and a decrease in U.S. oil inventories

On January 16, WTI crude oil futures touched $80 a barrel for the first time since August last year and set a new high since July last year, as new sanctions against Russia by Western countries began to affect crude oil supplies and US inventories tightened. Buyers of Russian oil are increasingly turning to other suppliers, with some countries, including India, saying they will bar sanctioned tankers from entering the country after the United States imposed its toughest sanctions to date. Freight costs have soared and spot pricing patterns in the United States have also changed. This has added momentum to the already strong crude oil prices at the beginning of the year. On the other hand, contrary to widespread expectations that global crude oil inventories will be significantly overstocked, US crude oil inventories have fallen for eight consecutive weeks to their lowest level since April last year. However, according to Dennis Kissler, senior vice president of BOK Financial Securities, the rise in oil prices is likely to be limited to $81/barrel, and futures prices are already hovering around the overbought area of the Relative Strength Index on the 14th.