Markets

After the previous week's rout, futures prices for ICE Brent, NYMEX WTI, and DME Oman registered strong recoveries over the week ending Jan. 13.

A Reuters poll of 30 market watchers showed that price forecasts for Brent and WTI were downgraded by 4.6% and 3.4%, respectively, from projections in a Nov. survey.

Most petroleum futures prices rose over each of the weeks through Dec. 23 and Dec. 30, but the larger uptick was seen in the first week, when Winter Storm Elliott disrupted the US oil industry (as well as other sectors) with freezing temperatures and precipitation throughout large areas of the country.

While more-upbeat sentiment regarding a potential demand recovery helped to push oil futures prices higher over the week ending Dec. 16, it was not enough to recoup the rout suffered in the week ending Dec. 9.

The start of the Group of Seven Nations (G7)'s price cap on Russian crude and the EU's ban on imports of seaborne Russian oil on Dec. 5 did not offer the price support that some had earlier been anticipating.

Traders were looking ahead to the OPEC+ meeting on Dec. 4 as well as the launch of the Group of Seven Nations (G7)'s price cap on Russian crude and the EU's ban on imports of seaborne Russian oil that both begin on Dec. 5.

More increases in coronavirus-infection rates in China during the week to Nov. 25 reignited worries that the country's economic recovery will be long and slow, keeping a lid on demand.

After talk of China loosening its coronavirus-related restrictions late in the week to Nov. 11, weekend figures showed a spike in infections in the country, which dampened petroleum sentiment early in the week ending Nov. 18.

Early in the week, traders were focused on tight restrictions related to China's zero-COVID-19 policy, which are bearish for demand sentiment.

The 2MM-b/d crude-production cut by OPEC+ was scheduled to have begun on Nov. 1, giving focus to supply tightness.