Oil prices drop over 1% at close

Oil drilling rigs

Oil prices declined on Tuesday on profit-taking, alongside an assessment of expectations for stable crude oil demand in the US this year.

At settlement, Brent crude futures for March delivery fell by 1.35%, or $1.09, to $79.92 a barrel.

Meanwhile, WTI crude futures for February delivery declined by 1.65%, or $1.32, to $77.50 a barrel.

In its monthly report, the Energy Information Administration (EIA) expected stable US oil demand at 20.5 million barrels per day in 2025, while raising its forecast for US crude production by 0.2% to 13.55 million barrels per day.

The American Petroleum Institute (API) oil inventory report is awaited early on Wednesday, ahead of the official inventory data release from the EIA later in the day, with expectations of a crude stockpile decline for the eighth consecutive week.