Oil Prices Flat Amid Supply-Demand Tug-of-War

12 Dec 2024 , 09:22 AM

Early Asian trading on Thursday saw little movement in oil prices as advantages from a new round of European Union sanctions that endangered Russian oil exports were offset by predictions of sluggish demand and a higher-than-expected increase in U.S. petrol and distillate stockpiles.

Brent crude futures were trading at $73.47 a barrel, down 5 cents. West Texas Intermediate crude futures in the United States dropped 11 cents to $70.18. On Wednesday, both benchmarks increased by more than $1 apiece.

On Wednesday, OPEC lowered its 2025 demand growth projections by the most amount yet, and for the fifth consecutive month.

The change was caused by two factors: non-OPEC+ supply increase and weak demand, especially in top importer China. However, after Beijing this week announced plans to implement a “appropriately loose” monetary policy in 2025, which might increase demand for oil, investors expect a surge in Chinese demand.

For the first time in seven months, Chinese crude imports increased annually in November, rising more than 14% over the previous year.

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