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Crude oil futures fell overnight (Dec. 14) after the IEA warned in a report that the spread of the Covid-19 Omicron strain will impact oil demand.
- WTI crude futures were down 56 cents, or 0.8%, at $70.73 a barrel.
- BRENT crude futures were down 69 cents, or 0.9%, at $73.70 a barrel.
Both crude oil futures fell after the IEA declared that global oil markets are oversupplied and will tighten early next year. COVID 19 now in the form of the Omicron variant has again affected international travel.
The IEA reports that the oil supply is increasing worldwide. The expansion of OPEC+ production capacity and the withdrawal of oil from the strategic reserves of various countries, including the United States, Canada, and Brazil, will further increase the supply of oil.
According to the IEA, the world oil market is forecast to be in surplus by 1.7 million b/d in early 2022, and global oil demand is expected to decline by 600,000 b/d in the first quarter of 2022.
Investors are looking ahead to today’s release of U.S. crude oil inventories by the EIA.
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Wednesday, December 15, 2021