Oil markets face turbulence amid China's weak demand
Oil prices on the New York fuel exchange are moving in a "challenging environment," writes Bloomberg. Markets are concerned about the global demand outlook for fuels, especially in China, while global oil supply remains high, report brokers.
Bloomberg reports that the markets are concerned about the global demand for fuels, particularly in China, at a time when the oil supply is high.
A barrel of West Texas Intermediate oil for December delivery costs $67 on NYMEX in New York, down by 0.04%.
Brent on ICE for January 2025 is priced at $71 per barrel, after an increase of 0.13%.
The strong US dollar, which has been rising since Donald Trump was elected President, impacted the prices of commodities denominated in the American currency. It has now slightly weakened, offering some relief to commodity buyers.
Fuel market analysts point out that oil prices have fluctuated since mid-October, moving between gains and losses as investors closely monitor the hostilities in the Middle East. They fear an escalation of conflict and possible disruptions in oil supplies. So far, there have been no issues with oil supplies.
Eyes on China
However, oil consumption is weak in China, which has been the largest importer of this raw material until now.
For next year, the International Energy Agency forecasts an oversupply of oil in global fuel markets.
In such a situation, oil market participants worry about the prospects of higher crude supply from OPEC+ countries and the USA, compounded by weak fuel demand forecasts in China, says Jun Rong Yeap, market strategist at IG Asia Pte.
He adds that there are not many 'bullish catalysts' for raising oil prices on which one could rely.
Not oil, but gold
Goldman Sachs Group Inc. Analysts have included gold, rather than oil, on their list of the most popular commodities for 2025. They advise investors to "Go for Gold," expecting this precious metal's price to rise to $3,000 per ounce during Donald Trump's presidency.
"Bet on gold," writes Daan Struyven, a Goldman Sachs analyst, in a market note.
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