Oil Steady as Investors Focus on 2025 Outlook
Oil was steady as traders focused on risks to 2025, ranging from supply to uncertainty over the incoming Trump administration.
West Texas Intermediate held above $70 a barrel in thin trade after rising 1.6% last week, and Brent neared $74. There are widespread expectations that the market will be oversupplied next year, which will likely make it harder for OPEC and its allies to revive idle production.
Crude is headed for a loss this year, trading in a narrow range since mid-October. The market has been rocked by bullish and bearish signals, including ongoing hostilities in the Middle East and concerns about demand from China, the world’s biggest oil importer.
President-elect Donald Trump’s actions after he takes office next month will keep traders on edge. He has threatened tariffs on Canadian and Mexican oil producers, while his pick for national security adviser has vowed “maximum pressure” on Iran. “Crude oil futures have been slightly down this year with most traders and analysts adopting a cautious outlook for 2025 given the many uncertainties,” said Ole Hansen, head of commodity strategy at Saxo Bank.
That includes the risk of Trump’s tariffs hurting global growth and demand, the outlook for the Chinese economy, the pace of the transition to electrification, and the ability of OPEC+ to stay united amid falling prices and high levels of spare capacity, he said.
Source: Bloomberg
