Oil prices falter amid uncertain demand in China and global oversupply
Oil prices on the New York fuel exchange are moving in a "challenging environment," writes Bloomberg. There are global concerns about the demand outlook for fuels worldwide, particularly in China, while global oil supply remains high, report brokers.
Concerns persist in the markets about the demand forecast for fuels worldwide, especially in China, at a time when global oil supply is abundant, reports "Bloomberg".
- A barrel of West Texas Intermediate oil for December delivery costs $67 on NYMEX in New York, down by 0.04%.
- Brent on ICE for January 2025 is priced at $71 per barrel, after an increase of 0.13%.
The strong US dollar, which had been appreciating since Donald Trump was elected President of the United States, weighed on the prices of commodities denominated in the American currency, but has now slightly weakened, providing some relief to commodity buyers.
Fuel market analysts note that oil prices have fluctuated since mid-October between gains and losses as investors closely monitored the hostilities in the Middle East, fearing an escalation of conflict in that region and possible disruptions in oil supplies. So far, oil supplies have remained stable.
Eyes on China
However, oil consumption is weak in China, which has been the largest importer of this raw material globally until now.
For next year, the International Energy Agency forecasts an oversupply of oil in global fuel markets.
- There are not many 'bullish catalysts' to rely on for raising oil prices, he adds.
Not oil, but gold
Analysts at Goldman Sachs Group Inc. have highlighted gold, rather than oil, on their list of the most popular commodities for 2025, advising investors to "Go for Gold." During Donald Trump's presidency, they expect the price of this precious metal to rise to $3,000 per ounce.
"Bet on gold," writes Daan Struyven, a Goldman Sachs analyst, in a market note.
