Oil Prices - Dec 10
Posted: Tue Dec 10, 2024 4:11 pm
Trading Economics:
WTI crude oil futures eased toward $68 per barrel on Tuesday afternoon as concerns about the collapse of the Syrian government subsided, but the market found support from China's promise to step up policy stimulus.
> On Monday, the prime minister of ousted Syrian President Assad agreed to hand power to the rebel-led Salvation Government, a day after the rebels captured the capital. The rebels were in the process of establishing a new government, with the country’s banks and oil sector set to resume operations on Tuesday. < Syria is a very small oil producer, so this has no impact on global oil supplies.
> Declines were limited by China's pledge of more proactive fiscal measures and looser monetary policy next year, which could revive economic growth and boost energy demand.
> Meanwhile, traders awaited U.S. inflation data due later this week for more clues on the Federal Reserve's next policy move.
HFI Research is forecasting that EIA will report a crude oil inventory build in the U.S. of 5.8 million barrels, due to much lower than normal exports of U.S. light oil. U.S. refiners cannot handle more ultra-light oil, so it is exported to refineries in Europe. As usual, the paper traders will over-react to a storage build.
WTI crude oil futures eased toward $68 per barrel on Tuesday afternoon as concerns about the collapse of the Syrian government subsided, but the market found support from China's promise to step up policy stimulus.
> On Monday, the prime minister of ousted Syrian President Assad agreed to hand power to the rebel-led Salvation Government, a day after the rebels captured the capital. The rebels were in the process of establishing a new government, with the country’s banks and oil sector set to resume operations on Tuesday. < Syria is a very small oil producer, so this has no impact on global oil supplies.
> Declines were limited by China's pledge of more proactive fiscal measures and looser monetary policy next year, which could revive economic growth and boost energy demand.
> Meanwhile, traders awaited U.S. inflation data due later this week for more clues on the Federal Reserve's next policy move.
HFI Research is forecasting that EIA will report a crude oil inventory build in the U.S. of 5.8 million barrels, due to much lower than normal exports of U.S. light oil. U.S. refiners cannot handle more ultra-light oil, so it is exported to refineries in Europe. As usual, the paper traders will over-react to a storage build.