Markets

Oil prices were highly volatile this week, driven by economic data, geopolitical risks, and the Federal Reserve’s monetary policy decisions.

Oil prices for 2025 are projected to remain moderate, influenced by a combination of weaker demand growth, supply surpluses, and geopolitical uncertainties.

President-elect Donald Trump has issued a stark warning to the European Union (EU) to increase its imports of US oil and gas, threatening to impose tariffs on EU exports to the US if the EU fails to comply.

The inclusion of US WTI in the Dated crude benchmark has successfully added liquidity and transparency to the market, helping revive participation from long-absent market players and encouraging new entrants.

The possibility of US President-elect Donald Trump imposing a 25% tariff on crude imports from Canada and Mexico has sparked significant concerns within the energy sector.

In addition to the threat of more sanctions on Russia and Iran, oil futures were supported by the overthrow of Syrian President Assad and by promises from China that fiscal stimulus measures would be increased.

Recent political developments in Syria, despite its minimal oil output, could significantly affect global crude markets due to its strategic location and alliances with Russia and Iran.

OPEC has made its deepest cut yet to its 2024 oil demand forecast, marking the fifth consecutiveOPEC has revised its oil demand forecast for 2024 downwards for the fifth consecutive month, now predicting a growth of just 1.6MM b/d, a 27% reduction from its July estimate. month of downward revisions.

As President-elect Donald Trump prepares for a return to the White House, the oil and gas industry has cautiously assessed the potential impacts of his policies.

US crude oil exports experienced a notable drop in the week ending Dec. 6, 2024, averaging 2.9MM b/d, a decline of 1.5MM b/d from the previous week.