Oil Markets Juggle Supply and Demand Fears

9 Dec 2024 , 11:50 AM

Early Asian trading on Monday saw uneven oil prices as growing Middle East tensions following the ousting of Syrian President Bashar al-Assad by rebels countered worries over poor Chinese demand.

Brent crude prices dropped 1 cent to $71.11 per barrel. West Texas Intermediate oil futures in the United States increased by one cent to $67.21 per barrel.

Despite an OPEC+ resolution to postpone output hikes and extend steep production cuts until the end of 2026, analysts predicted a supply surplus next year due to sluggish demand, which caused Brent to lose more than 2.5% last week and WTI to drop 1.2%.

As the market is impacted by sluggish demand from top importer China, Saudi Aramco, the largest crude oil supplier in the world, announced on Sunday that its January 2025 prices for Asian consumers have dropped to the lowest level since early 2021.

In the meantime, Syrian rebels declared on state television Sunday that they had overthrown President al-Assad, ending a 50-year family dynasty in a lightning-fast offensive that sparked concerns about a fresh round of instability in a war-torn Middle East.

On the supply side, prices were also driven down by an increase in the number of oil and gas rigs that were set up in the United States last week, which indicated increased production from the largest crude producer in the world.

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