Markets mired in range as traders await new administration
December 26, 2024
Crude oil price rose on December 24 driven by increased China stimulus to support higher oil demand and market surveys expecting a drop in total US crude oil stocks by 3.2 million barrels and US distillate stocks expected to fall by 2.5 million barrels for the week ending December 20th. DOE inventory report will be Friday December 27 at noon due to Christmas Eve and the Christmas Holiday.
The API estimates called crude down 3.2 million barrels, gasoline up 3.9 and distillates down 2.5.
Indian refiners are having difficulties finding additional Urals crude oil barrels on the spot market. India has been one of the largest buyers of Russian crude since the invasion of Ukraine and following sanctions. The thoughts are that Moscow is holding out for longer-term deals and is currently holding back supplies.
These markets continue to be stuck as it has geopolitical worries surrounding Russia and the Middle East versus the outlook of poor demand and a crude oil surplus. This market is also waiting on a new administration.