1 week Ago
Oil began 2025 by rising to the highest level since November, boosted by a report of shrinking crude stockpiles in the US and bullish technical indicators. Brent traded above $75 a barrel, and West Texas Intermediate topped $72. A report from the American Petroleum Institute showed inventories fell by 1.
4 million barrels last week, a sixth straight draw if confirmed by government data later Thursday. The gain was also aided by technical indicators, with the two benchmarks closing above their 100-day moving averages on Tuesday for the first time since October. Those moves have brought crude toward the higher end of the band it’s been stuck in since the middle of October.
After posting the smallest annual price move in over a decade, investors are bracing for an oversupply this year, making it harder for OPEC to revive idled production. Still, much of the outlook rests on the unpredictability of a second presidential term by Donald Trump. It’s the fourth straight session of gains, “with technical momentum, more than underlying fundamentals, being the driver,” said Ole Hansen, head of commodities strategy at Saxo Bank AS.
“The upside from a fundamental perspective seems limited, with ample supply, rising non-OPEC production and elevated spare capacity keeping a lid on prices.” China’s economic recovery remains uncertain, with recent data showing factory activity slowed its pace of expansion in December. The rapid adoption of electric vehicles and renewable fuels is also chipping away at gasoline demand.
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