DTN Oil Update
Oil Futures Mixed Despite Optimistic 2025 Outlook
HOUSTON (DTN) -- Oil futures were mixed Tuesday, the last trading session of 2024, despite limited supply fundamentals and expectations of a global oil demand recovery next year.
The February NYMEX WTI futures contract rose $0.04 to $71.03 barrel (bbl), hitting a five-week high. So far in December, the average price of WTI for February delivery has been $64.19 bbl. Meanwhile, the February ICE Brent futures contract rose by $0.02 to $71.04 bbl, the highest level reported in the last three weeks.
In the opposite direction, the January ULSD futures contract dropped by $0.0075 to $2.2920 gallon while the RBOB futures contract for January delivery was down by $0.0076 to $1.9687 gallon.
But the U.S. Dollar Index rose by 0.03% to 108.045 against a basket of foreign currencies.
The larger-than-expected crude inventory drop reported by the Energy Information Administration EIA for the week ended Dec. 20 has supported the bullish sentiment on the crude oil futures market. For the fifth consecutive week, stocks fell by 4.2 million bbl to 416.8 million bbl last week, according to EIA data.
Oil futures prices have also increased in the last trading sessions as market participants are focusing their attention on the demand for crude and oil products for next year.
Additional sanctions on Russian and Iranian crude are expected to contribute to a global supply tightness next year.
Expectations that China's economic recovery will be driven by a more flexible fiscal policy and an increase in government spending in 2025, are anticipated to trigger more demand from the main importer of oil in the world next year.
Meanwhile, the Russia-Ukraine war and ongoing political conflicts in the Middle East are also being watched closely by market participants as they could affect trade flows of crude and oil products globally in 2025.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
