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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/oil-prices-stabilize-as-u-s-inflation-data-eases-supply-concerns/
Oil prices stabilized on Monday following losses last week, as lower-than-expected U.S. inflation data helped ease investors’ concerns about a potential supply surplus in the coming year.
By 1300 GMT, Brent crude futures were down 38 cents, or 0.52%, at US$72.56 per barrel, while U.S. West Texas Intermediate (WTI) crude futures had fallen 34 cents, or 0.49%, to US$69.12 per barrel.
The market initially saw gains on Friday after U.S. inflation data showed signs of cooling, providing some relief to investors following last week’s interest rate cut by the Federal Reserve, according to IG Markets analyst Tony Sycamore. “I think the U.S. Senate passing legislation to end the brief shutdown over the weekend has helped,” he added.
However, those early gains were reversed by a stronger U.S. dollar, which weighed on oil prices, noted UBS analyst Giovanni Staunovo. “With the U.S. dollar changing from weaker to stronger, oil prices have given up earlier gains,” he explained. The dollar was hovering around two-year highs on Monday morning, after hitting that milestone on Friday.
Brent crude futures fell by 2.1% last week, while WTI futures lost 2.6%, driven by concerns over global economic growth and weaker oil demand. This came after the U.S. central bank signaled a cautious stance on further monetary easing.
Research from Sinopec, Asia’s largest refiner, also contributed to the price drop, with projections that China’s oil consumption would peak in 2027. Macquarie analysts, in their December report, forecast a growing supply surplus for next year, which they believe will hold Brent prices to an average of US$70.50 per barrel, down from this year’s average of US$79.64.
Concerns regarding European oil supply were alleviated after reports indicated that the Druzhba pipeline, which transports Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic, and Germany, resumed operation following a technical shutdown last week due to issues at a Russian pumping station.
In geopolitical news, U.S. President-elect Donald Trump urged the European Union to increase imports of U.S. oil and gas or face tariffs on the bloc’s exports. Additionally, Trump threatened to reassert U.S. control over the Panama Canal, accusing Panama of charging excessive rates. This drew a strong rebuke from Panamanian President Jose Raul Mulino.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/oil-prices-stabilize-as-u-s-inflation-data-eases-supply-concerns/
