January 8, 2025
Oil is falling in price after a week of growth: optimism about demand is disappearing thumbnail
Economy

Oil is falling in price after a week of growth: optimism about demand is disappearing

Oil prices edged lower on January 7, extending their second-straight session of declines after last week’s gains, although concerns over supply cuts from Russia and Iran amid increased Western sanctions halted losses.”, — write: epravda.com.ua

Oil prices edged lower on January 7, extending their second-straight session of declines after last week’s gains, although concerns over supply cuts from Russia and Iran amid increased Western sanctions halted losses. Reuters writes about it. Brent futures were down 8 cents, or 0.1%, at $76.22 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 15 cents, or 0.19%, at $73.42. According to Reuters, both benchmarks fell on Monday after five days of gains last week and settled at their highest levels since October on Friday amid expectations of more fiscal stimulus to revive China’s faltering economy.Advertisement: “Weakness this week likely , due to a technical correction as traders react to softer economic data around the world, undermining the optimism seen earlier,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, citing bearish economic news from the US and Germany. Also weighing on oil prices is rising supply from non-OPEC countries, which, combined with weak demand from China, is expected to help supply the oil market this year. This week, market participants await additional data, such as the December US non-farm payrolls report on Friday, to learn about US interest rate policy and the outlook for oil demand. appears to be running out,” ING analysts wrote in a note. “Although there has been some restraint in the physical market, fundamentals will still be comfortable until 2025, which should cap growth.” However, concerns about reduced supplies from Russia and Iran amid sanctions kept oil prices at a lower level. Uncertainty boosted demand for Middle Eastern oil, which led to a February increase in Saudi Arabia oil prices to Asia, the first such increase in three months.

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