Markets

Geopolitical tensions pushed futures prices for crude benchmarks higher.

After prices for crude benchmarks fell in the previous week thanks to news that a ceasefire in Gaza was likely, they climbed due to reports indicating that the ceasefire proposal had been rejected.

More headwinds related to China's economic recovery as well as a shift in sentiment regarding interest-rate cuts pressured futures prices for crude benchmarks.

Supply-side concerns and positive economic sentiment pushed prices for ICE Brent, NYMEX WTI, and DME Oman to 11-, ten-, and nine-week highs.

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.