Oil Prices on Jan 3
Posted: Fri Jan 03, 2025 12:28 pm
From OilPrice.com
"Oil markets have started the year with a renewed sense of optimism, driven by stock draws in the U.S. and China's attempts to stimulate its economy. The gradual return of oil market participants from the New Year’s Eve holidays has been marked with tacit optimism as US stock draws tightened product availability just as cold snaps are threatening both Europe and the US. Meanwhile, China’s vows to be more proactive with stimulus measures have lifted the spirits of those who gave up on more robust policy coming from Beijing, even if temporarily, pushing ICE Brent futures closer to $76 per barrel."
U.S crude oil and gasoline inventories are at the bottom of the 5-year range AND U.S. oil production has flatlined. The global oil market is MUCH TIGHTER than the current False Paradigm that oil supply will increase more than demand for oil. Q1 is the lowest demand period of the year for transportation fuels. In Q2 demand will exceed supply.
"Oil markets have started the year with a renewed sense of optimism, driven by stock draws in the U.S. and China's attempts to stimulate its economy. The gradual return of oil market participants from the New Year’s Eve holidays has been marked with tacit optimism as US stock draws tightened product availability just as cold snaps are threatening both Europe and the US. Meanwhile, China’s vows to be more proactive with stimulus measures have lifted the spirits of those who gave up on more robust policy coming from Beijing, even if temporarily, pushing ICE Brent futures closer to $76 per barrel."
U.S crude oil and gasoline inventories are at the bottom of the 5-year range AND U.S. oil production has flatlined. The global oil market is MUCH TIGHTER than the current False Paradigm that oil supply will increase more than demand for oil. Q1 is the lowest demand period of the year for transportation fuels. In Q2 demand will exceed supply.