Global crude volume declined 2% in 2024
January 7, 2025
Crude oil and gasoline prices rose significantly in the early morning trading hours but fell later in the day and closed slightly lower. ULSD price closed at the highest level since October 7 due to a winter storm in the US increasing heating oil demand which is part of the diesel fuels refinery complex.
US manufacturing for new goods fell in November 2024 due to weaker commercial aircraft demand and spending on business equipment slowing in Q4.
Sudan lifted a yearlong force majeure on crude oil transport from South Sudan to the Red Sea. But western nations led by the US are tightening sanctions on Russia and Iran and that has the market concerned about less supply. These efforts are offering support to crude oil prices.
Also supporting crude oil are reports that China’s Shandong province, is directing ports to avoid sanctioned tankers.
Reuters reports that the volume of global crude exports in 2024 declined 2%, the first fall since the COVID-19 pandemic, shipping data showed, due to weak demand growth and as refinery and pipeline changes reshuffled trade routes.