Crude oil prices are rising as improving demand from China and India offsets concerns about the delayed OPEC+ meeting. The delay raised worries about whether production cuts would be extended, especially with some members eager to increase output and capitalize on their investments in oil and natural gas futures. However, early demand indicators from Asia suggest that additional oil may be necessary this winter.
India’s fuel consumption surged in November 2024, signaling strong demand growth. Meanwhile, China’s manufacturing sector has shown steady improvement. The Purchasing Managers Index (PMI) rose to 50.3 in November, indicating expanding activity for the second consecutive month. This positive trend points to a potential rise in China’s oil demand.
Geopolitical tensions remain high, especially after the breakdown of the Israeli ceasefire in Lebanon and escalating conflict in Syria. Syrian rebels now control most of Aleppo, and Iran has intervened to support the government, raising further uncertainty in the region.
In the U.S., natural gas prices are under pressure due to forecasts predicting a shift to warmer-than-normal temperatures. In contrast, Europe faces potential energy challenges if the cold weather persists, testing the resilience of its infrastructure.
As we move beyond Thanksgiving, the focus shifts back to global supply and demand dynamics, with inventory drawdowns and cold weather expected to support the market.
Author: Mr. Ram
Website: cryptoearningshq.blogspot.com
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