Crude oil prices started the last week of 2024 with slight gains, but quickly reversed, ending where they began. Brent crude is trading at $74.00 per barrel, while West Texas Intermediate is at $70.42 per barrel, only slightly down from Friday’s close.
Last week, oil prices rose on optimism about China’s oil demand prospects. However, two recent forecasts from major Chinese oil companies predicted a peak in global oil demand soon. Despite this, global crude oil consumption reached an all-time high in 2024, with oil stockpiles heading into next year at relatively low levels.
Ryan Fitzmaurice, senior commodity strategist, expects China’s economic data to improve in 2025 as stimulus measures take hold. Lower interest rates in the US and elsewhere are also expected to support oil consumption.
However, Rapidan Energy warns that supply risks in the Middle East have increased, potentially leading to disruptions. The company’s president, Bob McNally, notes that the threat of disruption has shifted from Gaza and Hezbollah to Saudi Arabia and Iran.
For now, crude oil prices remain stable, with Brent crude and West Texas Intermediate trading at $74.00 per barrel and $70.42 per barrel, respectively.
Source: https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Flatline-as-2024-Draws-to-a-Close.html