14-Dec-2024 15:10

WTI crude oil futures broke above $70 per barrel mark in the week gone by amid anticipation of improved demand from China, after it recently pledged to implement a looser monetary policy next year, potentially boosting energy demand from the key consumer. Broad market dynamics still indicate a medium term modest trajectory for oil prices. The International Energy Agency, in its monthly report, expected non-OPEC+ nations to boost supply by about 1.5 million barrels per day (bpd) next year, exceeding demand growth forecast of 1.1 million bpd. The downside, however, remains cushioned amid concerns about supply disruptions stemming from tighter sanctions on Russia and Iran. WTI Crude ended the week around $71 per barrel, hitting three week high and up around 6% for the week. Market seems to be tracking US supplies too. The Energy Information Administration reported an estimated inventory decline of 1.4 million barrels for the week to December 6 following a draw of 5.1 million barrels for the previous week.

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