Crude Oil Price in US on January 22 2026: Dip Despite Monthly Gains, Global Supply Concerns Persist

Crude oil prices fell to $59.65 per barrel on January 22, 2026, down 1.59 per cent, as global oversupply concerns continued to weigh on the market. Despite rising 2.18 per cent over the past month, prices remain far below last year’s levels.

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Crude oil prices on January 22 fall after recent gains

Crude oil prices fell on January 22, 2026, as worries about excess supply continued to pressure the market. Crude oil slipped to $59.65 per barrel, down 1.59 per cent from the previous day. The fall came after a period of modest gains, with prices up 2.18 per cent over the past month, as reported by Trading Economics.

However, oil remains sharply lower compared to last year. Current prices are 20.06 per cent below their level a year ago, showing how weak demand and high supply continue to affect the market.

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Oversupply concerns dominate the market

The main reason for the fall is continued concern about too much oil in the global market. The International Energy Agency (IEA) has said that global oil supply is expected to be much higher than demand this year.

This remains true even after the IEA slightly increased its forecast for demand growth. Traders see this imbalance as a major risk, keeping prices under pressure.

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US inventories add to bearish mood

Adding to the negative outlook, industry data showed that US crude oil inventories rose by around 3 million barrels last week. Higher stock levels suggest weaker demand or excess production, both of which tend to push prices lower.

This data strengthened the view that the oil market is well supplied and does not face any immediate shortage.

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Geopolitical tensions ease

Oil prices were also affected by easing global tensions. US President Donald Trump said he would delay tariff measures against Europe after progress was made toward a framework agreement related to the Arctic island.

He also ruled out the use of force, which reduced fears of conflict. Lower geopolitical risk usually reduces the risk premium in oil prices, limiting price support.

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Supply risks offer limited support

Some factors helped prevent a sharper fall. A force majeure at a major oilfield in Kazakhstan could keep production at two large fields offline for another week.

In addition, weak oil exports from Venezuela suggest that its production recovery remains slow. These supply-side issues offered limited support to prices but were not strong enough to change the overall trend.

Market outlook remains cautious

Crude oil trading is still influenced by oversupply fears and mixed global signals. Unless demand improves sharply or major supply disruptions occur, prices may continue to remain under pressure in the near term.