Daily Market Report

Crude oil futures soared while natural gas prices tanked to finish the trading week. Oil prices have found support on geopolitical tensions in Eastern Europe, but natural gas tanked on profit-taking. Energy commodities continue to be volatile heading into 2025.

Crude oil prices increased by approximately 2%, driven by heightened geopolitical tensions between Russia and Ukraine and potential delays in OPEC+ production increases. Despite weaker global demand, supply disruptions, and geopolitical risks have tightened market conditions.

The petroleum market is influenced by geopolitical tensions, inventory dynamics, and regional production trends. Crude prices have shown modest fluctuations, while inventory data and escalating geopolitical risks weigh heavily on market sentiment.

Global petroleum markets are experiencing fluctuations driven by geopolitical tensions, production halts, and demand-supply dynamics. While oil futures recorded marginal gains, India continues to source discounted Russian crude oil, reinforcing its dependency. Meanwhile, disruptions in major oilfields and OPEC+ policy decisions will play a pivotal role in shaping the market outlook.

Crude oil prices witnessed a modest rise driven by geopolitical tensions and fluctuating market dynamics. China's reduced refinery throughput and subdued crude oil demand significantly influenced the market, dampening global oil price gains. Additionally, the International Energy Agency (IEA) forecasts a global supply surplus in 2025 despite OPEC+ production cuts.

Global oil prices dropped as Brent and WTI futures fell 0.9% each amid weak demand and a stronger US dollar. Nigeria boosted crude production to 1.8 mbpd, targeting 2 mbpd by late 2024. Suriname’s oil development progressed with a major investment in Block 58.

Oil prices have declined, driven by weak demand from China and potential supply increases from the U.S. and OPEC+. Brent and WTI futures fell, while the IEA forecasts a supply surplus by 2025. Additionally, U.S. crude inventories rose last week, with gasoline and distillate stocks unexpectedly dropping.

Oil prices saw a decline as global production forecasts rose amid slowing demand growth. OPEC recently lowered its global oil demand outlook due to reduced consumption in Asia, particularly China. Market sentiment remains cautious as participants await the International Energy Agency’s report for additional insights.

OPEC and the EIA have lowered their oil demand forecasts for 2024 and 2025 due to slower economic recovery in China and the global push toward clean energy. U.S. crude inventories rose by over two million barrels, reflecting slower demand growth, while support for crude oil prices remains in a limited range as futures attempt to hold steady.

Oil prices experienced slight declines in December and January futures amid rising U.S. dollar strength and tepid demand outlooks from China. Market sentiment remains mixed as economic support from China falls short of expectations, and ongoing geopolitical issues add uncertainty.

As oil prices decline due to stable U.S. supply and China’s weaker-than-expected economic initiatives, India’s refined fuel exports to Europe continue to grow, surpassing Saudi Arabia’s export levels. This strategic realignment in energy supply, fueled by Europe’s Russian oil embargo, underscores India’s role as a leading fuel exporter, potentially driving expansions in its refining capacity.

Global oil markets are navigating supply shocks and economic shifts as Hurricane Rafael disrupts nearly a quarter of daily oil output in the Gulf of Mexico, while China’s decline in oil imports places downward pressure on prices. A recent U.S. Federal Reserve interest rate cut aims to stimulate demand, balancing out some of the recent market headwinds.