Markets

Short-term US outages due to freezing weather as well as forecasts from the IEA and OPEC for strong demand this year supported prices for benchmarks ICE Brent, NYMEX WTI, and DME Oman.

Despite the ongoing outage at Libya's Sharara oil field and the tensions in the Middle East, futures prices for benchmark crudes retreated over the period ending Jan. 12 due to indications of weak demand.

Futures prices for benchmark crudes were supported by news that production was suspended at Libya's Sharara oil field as well as by heightened geopolitical risk amid more attacks in the Red Sea.

Futures prices for crude benchmarks dropped during the period as some shippers resumed transits through the Red Sea and the Suez Canal.

The geopolitical-risk premium was once again in effect for NYMEX WTI, ICE Brent, and DME Oman futures due to logistics issues related to shippers rerouting vessels to avoid the Suez Canal.

A big day-on-day price increase on Thursday after the IEA revised its demand forecast upward led to modest week-on-week upticks for NYMEX WTI and ICE Brent.

Doubts about how much production OPEC+ members will actually cut as well as bearish sentiment on the global economy continued to weigh on futures prices for benchmark crudes.

Prices for NYMEX WTI, ICE Brent, and DME Oman got some support on Tuesday and Wednesday from a supply disruption in the Black Sea.

Prices for NYMEX WTI, ICE Brent, and DME Oman strengthened early in the week ending Nov. 24 amid expectations that OPEC+ would further cut production at its next meeting.

Prices were lifted on Monday by upbeat talk of demand strength and on Friday by news of new sanctions on entities shipping Russian oil that was sold above the G7's price cap.