MARK CARNEY IS ENTERING CANADA’S LIBERAL LEADERSHIP RACE

MNI BRIEF: Highlights of Speech from BOC Deputy Gov Gravelle

Bank Of Canada EXPECTS TO END QT IN the 1ST HALF OF THIS YEAR

MNI BRIEF: Waller Sees Fed Cuts Sooner Than Markets Expect

MNI China Daily Summary: Thursday, January 16

MNI BRIEF: China Shipbuilding Up 13.8% In 2024

EZ/UK Bond Supply Calendar: EFSF Synd "Upcoming", Slov Due Mon

US EIA:NAT GAS STORAGE -258 BCF TO 3,115 BCF JAN 10 WK

MNI: US NOV BUSINESS INVENTORIES +0.1%; SALES +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: Oil Europe End of Day: Demand Concerns Remain Key Theme

OIL
BulletEnergy BulletsCommodities

Demand worries remain a key theme for oil markets as they fell on Friday, under pressure this week from mixed economic data out of China at the start of the week. 

  • Brent FEB 25 down -0.2% at 72.71$/bbl
  • WTI FEB 25 down -0.2% at 69.25$/bbl
  • Dollar strength has also weighed on oil this week as the Fed cut its outlook for next year, though the dollar has since fallen away from its Thursday peak.
  • Oil markets remain in a prolonged consolidation phase that looks set to remain until the end of the year barring any surprises. A U.S. stock draw on Wednesday offered short term support.
  • JP Morgan said this week it expects the oil market to move into a 1.2mn bpd surplus next year citing China weakness and non-OPEC supply strength.
  • President-elect Trump posted on Truth Social Friday the European Union “must make up their tremendous deficit with the United States by the large-scale purchase of out oil and gas.” If not, he will impose tariffs.
  • G7 countries are considering ways to tighten the price cap on Russian oil, such as with an outright ban or by lowering the price threshold based on a number of reports this week.
  • Oil supplies via Russia's Druzhba pipeline have been suspended since Dec. 19 but are expected to return in the coming days.
  • Crude curve backwardation remains strong suggesting supplies remain tight after the OPEC+ delay and with supply risks due to increased sanctions on Russia and Iran.
  • U.S. gasoline cracks have staged a recovery on Friday but remain weak while diesel markets have been largely trading sideways. 
258 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Demand worries remain a key theme for oil markets as they fell on Friday, under pressure this week from mixed economic data out of China at the start of the week. 

  • Brent FEB 25 down -0.2% at 72.71$/bbl
  • WTI FEB 25 down -0.2% at 69.25$/bbl
  • Dollar strength has also weighed on oil this week as the Fed cut its outlook for next year, though the dollar has since fallen away from its Thursday peak.
  • Oil markets remain in a prolonged consolidation phase that looks set to remain until the end of the year barring any surprises. A U.S. stock draw on Wednesday offered short term support.
  • JP Morgan said this week it expects the oil market to move into a 1.2mn bpd surplus next year citing China weakness and non-OPEC supply strength.
  • President-elect Trump posted on Truth Social Friday the European Union “must make up their tremendous deficit with the United States by the large-scale purchase of out oil and gas.” If not, he will impose tariffs.
  • G7 countries are considering ways to tighten the price cap on Russian oil, such as with an outright ban or by lowering the price threshold based on a number of reports this week.
  • Oil supplies via Russia's Druzhba pipeline have been suspended since Dec. 19 but are expected to return in the coming days.
  • Crude curve backwardation remains strong suggesting supplies remain tight after the OPEC+ delay and with supply risks due to increased sanctions on Russia and Iran.
  • U.S. gasoline cracks have staged a recovery on Friday but remain weak while diesel markets have been largely trading sideways.