Middle East tensions push up oil prices despite worries about demand

There has been a surge in the buying and selling of crude oil, which has caused major shipping lines to divert their routes through the Red Sea and has also caused further disruptions in Libyan production.
Diesel and gasoline have seen a “huge” increase as US stockpile data from the political risk market is being replenished.

by TAUHID SHAH : January 6: Saturday: 08:23 PM | 2024

And J.P. While giving this information on Friday in December, Morgan’s analysts said that the world oil demand in December was 1. 3 million BBL larger, which is slower than expected over the past nine months and 200 KBBL days less than expected, so industrial fuel use has slowed and the need for heating in winter has also decreased. Has gone.

And also the banks of America believe that the demand for gasoline in this December will be b. million BBL/day, which is 100 thousand/day less than forecast two weeks ago.

A report by the US government showed non-farm payrolls increased by a larger-than-expected 216K jobs in December, which would seem to support production.

The mild winter and continued weakness in industrial fuel prices in Europe have led to lower seasonal consumption of heating oil in most countries, leading to a decline in oil demand in most countries.

Before the start of 2024, the price of crude oil increased in the first week due to rising demand. This resulted in Nymex Crude for February delivery closed at $73.81 per barrel, up by 3%, while Brent Crude for March delivery closed at +2.2%, reaching $78.76 per barrel.

ETFs: (NYSEARCA: USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI)

After finishing 2023 as the second-worst performer among S&P 500 sectors, energy (NYSEARCA: XLE) ended the first week of the new year with +1%.

Top 10 gainers in energy and natural resources during the past 5 days: ZIM Integrated Shipping (ZIM) +49.3%, Scully Royalty (SRL) +21.9%, Ramaco Resources (METC) +18.4%, Capital Product Partners (CPLP) +16.6%, Stealthgas (GASS) +16%, Via Renewables (VIA) +13.7%, Teekay Tankers (TNK) +12.1%, Frontline (FRO) +11.3%, DHT Holdings (DHT) +11.2%, Pyxis Tankers (PXS) +11.1%.

Top 10 decliners in energy and natural resources during the past 5 days: Vertex Energy (VTNR) -36.2%, Nuscale Power (SMR) -22%, TPI Composite (TPIC) -20%, Dakota Gold (DC) -18%, American Battery Technology (ABAT) -16.5%, Contango Ore (CTO) -16.4%, Aemetis (AMTX) -15.6%, Brooge Energy (BROG) -15.1%, Piedmont Lithium (PLL) -15.1%, Coeur Mining (CDE) -14.7%. information source:Barchart.com