Connect with us

Hi, what are you looking for?


Oil Prices Swing: 6.3% Rise Nearly Erases 7% Loss

Oil Prices Swing: 6.3% Rise Nearly Erases 7% Loss

Recent weeks saw oil prices swing dramatically, with a 6.3% gain in WTI nearly offsetting the prior week’s 7% loss.
U.S. crude production recovered to 13.3 mb/d, with minimal growth prospects, further tightening the supply outlook.

The oil market has commenced the new year with prices remaining in a narrow range as concerns over fundamental weaknesses and the spectre of an economic downturn continue to outweigh the geopolitical uncertainties at play. Despite these fears, analysts from Standard Chartered have come forward to challenge the dominant market sentiment. They argue that the fundamentals of oil are stronger than currently recognized and that geopolitical risks are grossly underestimated.

The journey of the oil market has been anything but stable. Following a tumultuous period marked by significant recovery, where more than 7% in losses were recouped within a week, WTI crude demonstrated resilience with a 6.3% rise. Although this recovery was notable, it fell just short of fully reversing the downturn from the previous week. This recent volatility highlights the market’s sensitivity to immediate factors while potentially overlooking broader, more significant trends.

U.S. Crude Stabilises at 13.3mb/d Amid Tight Supply

Standard Chartered’s latest insights suggest a market that is much tighter than current prices indicate. A key factor in this analysis is the noticeable shift in oil balances from 2022 to 2023. The traditionally observed January surplus has dramatically reduced from a two-decade average of 1.2 million barrels per day to just 0.3 mb/d this year. This significant change signals a tightening market, contradicting the bearish outlook suggested by current price trends.

Moreover, U.S. crude oil production has stabilised at 13.3 mb/d following disruptions caused by weather-related incidents. However, projections suggest that supply will plateau, with negligible growth expected for the remainder of the year. This forecast is in line with Standard Chartered’s expectation of a slowing, potentially reversing, growth trend in U.S. crude supply by the end of 2024, further tightening the global oil supply.

Underestimations and overlooked potential fill the current narrative surrounding the oil market. Despite the constrained price range and looming economic uncertainties, the underlying fundamentals and geopolitical dynamics point to a tighter market scenario than many widely acknowledge.

The post Oil Prices Swing: 6.3% Rise Nearly Erases 7% Loss appeared first on FinanceBrokerage.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Enter Your Information Below To Receive Latest News, And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Enhancing and Broadening Managed Connectivity Solutions Across the Americas. OptConnect, a longtime leader in managed wireless services, today announced it has acquired Latin America-based...

    Editor's Pick

    CSL, Critical IoT Connectivity experts, announce the launch of CSL Satellite. CSL Satellite provides Critical Connectivity to remote or challenging environments, where mobile or...


    Honda said on Tuesday it was recalling 750,000 vehicles in the United States over a defect involving air bags which could deploy unintentionally during...


    Cruise, the driverless car company owned by General Motors is back in the spotlight after another close call with a pedestrian. The California DMV...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024