Oil Prices Pop as Markets Eye Middle East Tensions and Assess 2024 Growth Outlook
12.30.2023 By Tank Terminals - NEWS

December 30, 2023 [Businessinsider]- Oil prices jumped on Tuesday, adding to last week’s strong gains as traders keep an eye on turmoil in the Middle East and assess the outlook for global growth and crude demand heading into 2024.

 

West Texas Intermediate crude popped 2.8% to $75.65 a barrel, while Brent prices reached $81.14 a barrel, up by about 2.6%. That adds to last week’s gains of 3% for both oil benchmarks.
Energy markets are watching for more potential disruptions stemming from Houthi attacks on key cargo routes. Danish shipping giant Maersk said this weekend it would start up operations again in the Red Sea and the Gulf of Aden after suspending traffic through the key waterways. A multi-national naval operation led by the US has been launched to protect ships passing through the region.
The tensions in the highly important area around the Suez Canal add to fears of regional escalation of the ongoing Israel-Hamas conflict. The war, now in its third month, could drag in other regional players like Iran, while groups like Yemen’s Houthis and Lebanon-based Hezbollah have already been lobbing rockets toward Israel.
Oil prices are also getting a boost from the outlook for a soft landing or just a mild recession in 2024. Demand should stay high, experts say, as the US avoids a severe slowdown and the Federal Reserve gets ready to cut interest rates, further stimulating economic activity potentially.
While the International Energy Agency has said that it expects fossil fuel demand to decline through this decade, markets don’t seem to agree. JPMorgan’s top energy strategist said this month that peak oil won’t be seen in our lifetime, while a wave of oil mega-mergers and skyrocketing US production point to strong demand for years to come.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

UAE Invests Billions in AI to Diversify Economy Beyond Oil
11.13.2024 - NEWS
November 13, 2024 [Oil Price]- The United Arab Emirates’ state-owned energy giant Abu Dhabi Nat... Read More
Gulf Energy Transition: Assessing Saudi and Emirati Goals
11.13.2024 - NEWS
November 13, 2024 [The Washington Institute]- On October 29, during Saudi Arabia’s annual Futur... Read More
How will The Energy Sector Fare Under Donald Trump?
11.13.2024 - NEWS
November 13, 2024 [Investing Daily]- The energy sector experienced a notable boost following Dona... Read More
PNOC, Pertamina Partner on LNG Infrastructure, Supply Chain
11.13.2024 - NEWS
November 13, 2024 [Manila Bulletin]- State-run Philippine National Oil Company (PNOC) has signed ... Read More