Oil prices are witnessing fluctuations as traders assess a range of conflicting concerns regarding supply and demand. These concerns range from escalating tensions in the Middle East to cold weather issues disrupting production in the United States. An attack by a Ukrainian drone on a fuel export station belonging to Novatek’s Ust-Luga raised fears about supplies and prompted price hikes. Analysts suggest that Novatek is likely to resume its operations on a large scale there within weeks.
In the Middle East, both American and British forces carried out a new round of strikes targeting an underground storage site and missile capabilities used by the Houthi group. The attacks by the Houthis on ships in the Red Sea and surrounding areas have disrupted global shipping and raised concerns about inflation.
In the United States, 20% of oil production in North Dakota remains halted due to severe cold and operational challenges, as reported by the state’s pipeline authority on Monday. However, the primary concern for curbing price increases is the stalled economic recovery in China, the world’s largest importer of crude oil. Chinese policymakers have introduced a set of measures to support the economy, but domestic consumption remains tepid, leaving oil traders anxious about demand prospects.
A Reuters survey indicated an expected decrease in U.S. crude oil inventories by approximately three million barrels in the week ending January 19, further dampening prices.
You can now benefit from LDN company’s services through the LDN Global Markets trading platform.
Shady Fouad is a technical analyst at LDN Company
Shady's strategic vision in the currency markets is reinforced by more than fifteen years of trading experience, which enables him to blend economic and technical analyzes with high efficiency, and find the best investment ideas for traders.
