The energy commodity has not run away on the upside, but active month WTI and Brent futures prices have increased over the first month of 2024. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.
- In early February, the futures markets will begin to shift towards the anticipation of increasing gasoline demand during the coming months.
- Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions.
- While another rally to that level is unlikely, given the economic weakness in China, prices above $100 are possible as the Middle East remains a tinderbox of potential problems.
- On the date of publication, Andrew Hecht did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
- Nearby NYMEX WTI crude oil futures settled at $71.65 per barrel at the end of 2023, with the nearby ICE Brent futures at $77.04.
Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. Crude oil is the fossil fuel at the center of the stage in the 2024 U.S. The incumbent Biden administration favors continuing its policy addressing climate change through support for alternative and renewable fuels while inhibiting fossil fuel production and consumption.
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In early February, the futures markets will begin to shift towards the anticipation of increasing gasoline demand during the coming months. Therefore, crude oil, the critical input in gasoline refining, should crude oil wti tradingview receive seasonal support, lifting prices over the coming weeks and months. Nearby NYMEX WTI crude oil futures settled at $71.65 per barrel at the end of 2023, with the nearby ICE Brent futures at $77.04.
Key data points
All information and data in this article is solely for informational purposes. However, gasoline stocks unexpectedly fell and distillate stockpiles retreated more than expected. Nearby NYMEX WTI futures and ICE Brent futures declined by 10.7% and 10.2%, respectively, in 2023. For the best MarketWatch.com experience, please update to a modern browser.
April Brent crude oil prices have rallied 15.2% from $72.97 in mid-December 2023 to $84.09 on January 29, 2024. Crude oil’s mid-December low came as seasonality weighed on the energy commodity. Gasoline is the most ubiquitous oil product, and demand tends to decline to seasonal lows during winter when drivers put fewer clicks on their car’s odometers. Analysts believe that as long as tensions persist, markets will factor in supply concerns. While they are not running away on the upside, the appreciation has been slow and steady. On the date of publication, Andrew Hecht did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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Former President Trump, the likely Republican nominee, and others in his party support energy independence through “drill-baby-drill” and “frack-baby-frack” policies for hydrocarbons. The November election will set the path of U.S. energy production and consumption for the coming four years. However, until then, prices will likely remain volatile because of the close election and the uncertainty of the outcome. The bottom line is crude oil will likely remain volatile in 2024 as markets reflect the economic and geopolitical landscapes, which are highly uncertain for the coming months. The tug-of-war between bulls and bears will continue in 2024, creating lots of trading opportunities for nimble market participants with their fingers on the pulse of the international oil market. Tensions between the United States and Iran have reached a boiling point, with Iranian-backed attacks on the U.S. military in the region taking lives over the past week.
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Crude oil prices rose to the highest level since 2008, reaching over $130 per barrel in 2022. While another rally to that level is unlikely, given the economic weakness in China, prices above $100 are possible as the Middle East remains a tinderbox of potential problems. Crude oil below $80 per barrel in early February 2024 has more upside potential than downside risk as the market is moving out of the weak demand season, and geopolitics remain highly volatile. Meanwhile, as the Biden administration continues to replenish the U.S. The futures markets reflect seasonal changes weeks or a few months before they arrive. Spring and summer are the peak driving season when gasoline demand increases.
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Meanwhile, U.S. relations with Russia and Saudi Arabia remain strained. OPEC+ production policies are likely to keep petroleum prices elevated. Moreover, the hostilities between the U.S. and Iran could impact critical logistical routes in the Persian Gulf and the Straits https://1investing.in/ of Hormuz, causing supply issues and sudden upside oil price spikes. The bottom line is that a tense geopolitical landscape will be bullish for crude oil in early 2024. Brent crude oil prices declined from $85.91 to $77.04 per barrel over the same period.