– Advertisement –
Oil markets recorded a decline on Wednesday, as investors refocused on the balance between supply and demand, in a context marked by increased tensions between Russia and Ukraine. The latest figures on American stocks, higher than expected, also weighed on prices.
North Sea Brent, for delivery in January, lost 0.68%, settling at $72.81 per barrel. For its part, West Texas Intermediate (WTI), the American benchmark, ended its last trading day for December at $68.87, down 0.75%.
An unexpected rise in American stocks
The U.S. Energy Information Administration's (EIA) weekly report showed a 500,000-barrel increase in U.S. commercial crude reserves, while analysts expected a slight decrease of 85,000 barrels.
This accumulation is explained by a slowdown in refinery activities and an increase in imports, while demand for refined products, notably gasoline, fell by 10 %.
For John Kilduff, analyst at Again Capital, this situation has created downward pressure, although the market is showing signs of stabilization after the recent geopolitical tremors.
Russia at the heart of concerns
Tensions between Russia and Ukraine remain a major source of uncertainty. Moscow reacted vehemently to a Ukrainian attack involving American missiles, citing an expansion of the conditions for the use of nuclear weapons.
An escalation in the conflict could lead to disruptions to Russian energy infrastructure, which would have significant repercussions on global oil prices.
Russia, the world's second-largest oil producer, plays a key role in the global energy balance, and any impact on its production or exports could shake up the market.
Oversupply and Chinese demand in question
Beyond geopolitical issues, the prospects of excess supply in 2025 continue to worry investors. Added to this are doubts about the robustness of Chinese demand, which contributes to maintaining downward pressure on prices.
At the same time, OECD countries discussed this week a possible end to public financial support for fossil fuels, without reaching a consensus. These debates arise as the global energy transition faces complex political issues, particularly with the imminent arrival of Donald Trump in the White House.
– Advertisement –
