DTN Oil Update
Oil Futures Rose, Despite Saudi Arabia Cutting OSPs
HOUSTON (DTN) --
Oil futures maintained their upward trend Monday, despite Saudi Arabia cutting its official selling price of its crude benchmark for January shipments to Asia and other regions on expectations that sluggish global demand will continue.
Saudi Aramco set its January OSP of Arab Light shipments to Asia at plus $0.90 bbl, to North America at plus $3.80 bbl, and at minus $1.35 bbl to Europe (Mediterranean) and minus $1.25 bbl for West Europe, hitting low multi-year record levels.
Front-month WTI crude and February Brent crude contracts rose by almost $1bbl each on the day, supported by news of a shift of China's monetary policy in over a decade, coupled with the fall of Syria's President Bashar al-Assad government after a rebel group took control of the capital of Damascus last Saturday.
China's unexpected policy change was received positively by the markets Monday morning, as sluggish demand from the main importer of crude in the world has set a bearish tone in the oil markets throughout most of 2024.
China's Politburo released a statement over the weekend suggesting that the Asian country is ready to implement "proactive fiscal policies" and to boost its economy by easing its monetary policy. This new approach from the Chinese government to boost its economy is seen as a response to trade tariffs the U.S. government is expected to impose on Chinese goods in 2025, when President-elect Donald Trump begins a second term.
Near 4:22 p.m. EST, January WTI climbed $0.92 to $68.12 bbl, while February Brent was $71.90 bbl, up by $0.78. January RBOB futures rose by $0.0384 to $1.9446 gallon and January ULSD futures edged up by $0.0462 to $2.1933 gallon.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
