Oil Settles Up Over 1% On Large Draw From US Crude Stocks
Date
12/29/2024 3:02:28 AM
(MENAFN- The Peninsula)
The Peninsula
Doha, Qatar: Oil prices settled more than 1% higher on Friday and recorded a weekly gain in low trading volume ahead of year-end, buoyed by a larger-than-expected drawdown from US crude inventories last week. brent crude futures rose 91 cents, or 1.2%, to settle at $74.17 per barrel. US West Texas Intermediate crude futures rose 98 cents, or 1.4%, to $70.60 per barrel, noted Al-Attiyah Foundation in its Weekly energy market Review.
On a weekly basis, both Brent and WTI crude gained about 1.4%. US crude oil inventories fell by 4.2 million barrels in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand, data from the US Energy Information Administration showed on Friday. Optimism over Chinese economic growth has also sparked hopes of higher demand next year from the top oil importing nation. The World Bank on Thursday raised its forecast for Chinese economic growth in 2024 and 2025.
Meanwhile, Chinese authorities have agreed to issue special treasury bonds worth 3 trillion yuan ($411bn) next year, sources told Reuters last week, as Beijing acts to revive the sluggish economy. The Russia-Ukraine war, which had become an afterthought in energy markets due to stagnant oil demand, is regaining attention after recent events that could affect supplies next year, analysts said. Whilst tensions in the Middle East rose after Israel raided a Gaza hospital and struck targets in Yemen, these events are unlikely to impact oil prices next year.
Asian spot liquefied natural gas (LNG) prices gained last week, the first rise after three weekly declines, as the imminent expiry of a transit deal for Russian gas through Ukraine to Europe lent support to prices. The average LNG price for February delivery into north-east Asia was $14.10 per million British thermal units (mmBtu), up 6% from $13.30 per mmBtu last week, industry sources estimated.
Asian LNG prices have gained 20% this year and averaged $11.97/mmBtu in 2024. Analysts highlighted TTF's upward movement as a key focus, also noting that the upcoming expiry of the Russia-Ukraine gas transit contract at the end of the year is seen as bullish by industry participants. Russian President Vladimir Putin said on Thursday there was no time left this year to sign a new Ukrainian gas transit deal, and blamed Ukraine for refusing to extend the agreement that also brings gas to Slovakia, the Czech Republic and Austria.
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