Last month, a survey by law firm Haynes Boone LLC revealed that banks are gearing up for oil prices to fall below $60 a barrel by the middle of President-elect Donald Trump’s new term. Trump says he’ll push shale producers to ramp up output.
Oil prices fell in Monday’s morning session as traders await U.S. President-elect Donald Trump’s inauguration in the hope of some clarity on his policy agenda. Brent crude for March delivery was down 1.5% to trade at $79.66 per barrel at 11.20 am ET while WTI crude for February delivery declined 1.8% to $76.46 per barrel. According to PVM oil analyst Tamas Varga, the price declines can be chalked up to the huge uncertainty over the incoming president’s new policies.
The Suez Canal is one of the most important channels of the global oil trade. Northbound traffic worth ~3.9 million bpd is dominated by crude oil from Middle East producers to Europe and also middle distillates from India and the Middle East. Southbound traffic, estimated at 2.9 million bpd, comprises crude flows mainly from Russia to Asian customers, and also refined products naphtha and fuel oil. The United States, Qatar and Russia are the leading shippers of LNG via Suez.
Prices could receive additional support now from the latest GDP data from China, which showed the country hit its target for 2024, at 5%, versus analyst expectations of 4.9% growth. Even with forecasts about peak demand for crude oil, China’s economy is still dependent on hydrocarbons, meaning the news is bullish for crude.
Crude oil prices moved higher today, after the U.S. Energy Information Administration reported an inventory dip of 2 million barrels for the second week of the year.
Oil surpassed $80 a barrel for the first time since August as US inventories tightened and fresh sanctions on Russia began to affect crude flows.
The two-day oil price rally on Friday and Monday following the latest U.S. sanctions on Russia’s oil exports goes to show that geopolitics will continue to play a key role in oil price action and market balances this year.
The European Union’s top diplomat Kaja Kallas said Ukraine’s allies should work toward lowering the price cap on Russian oil in order to deprive the Kremlin of revenue.
He highlighted the financial challenges during his vetting by Parliament’s Appointments Committee on Monday, January 13, 2025.
Seplat Energy Plc has unveiled plans to increase its crude oil production by 140% to 120,000 barrels per day. The company’s Chief Financial Officer, Eleanor Adaralegbe, revealed in an interview with the Financial Times that they would increase output from the present 50,000 bpd to 120,000 bpd in H1 2025.