In early January 2026, crude oil prices eased, amid balanced market supply and demand as well as a mild bearish sentiment. A 3.4 million-barrel rise in US crude inventories underscored abundant supply, and strong refinery runs were at odds with flatter manufacturing demand, bluntin incremental crude purchasing. A bearish undertone was bolstered by US crude imports rising and gasoline stocks building. The sentiment was influenced by the retreat in geopolitical risk premium following the US signaling that military option against Iran was unlikely, which alleviated concern about supply disruption that had supported crude oil prices. Also, the prospect that Venezuelan crude might return to global markets widened the Brent-WTI discount. Metals and equities were among those to experience wild swings, in the wider commodities scene.
