Prices surge in oil after the fall of Syrian President Bashar al-Assad, which comes amid already limited gains due to declining demand prospects for next year, reported "Reuters".
Brent crude futures were up 36 cents, or 0.51%, at $71.48 a barrel this morning. U.S. West Texas Intermediate (WTI) crude futures were up 37 cents, or 0.55%, at $67.57 a barrel. With a supply glut looming next year, both Brent and WTI have posted losses over the past two weeks.
Saudi Aramco, the world's largest crude exporter, has cut its prices for January 2025. for Asian buyers to the lowest level since early 2021.
On December 5, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) delayed the start of the increase in oil production by three months and extended the full lifting of production cuts by one year until the end of 2026.
OPEC+ had planned to begin ending cuts from October 2024, but slowing global demand - particularly from top crude importer China - and rising production elsewhere have forced the organization to postpone the plan several times.< /p>
The number of oil and gas rigs deployed in the United States last week also reached its highest level since mid-September.
The U.S. Commodity Futures Trading Commission said lower prices saw money managers increase their net longer U.S. crude futures and options positions in the week to Dec. 3.
Investors are gearing up for a key US inflation report due on Wednesday, December 11, which will provide more data on the Federal Reserve's interest rate plans.
According to analysts, even if the US Federal Reserve further cuts interest rates, it is unlikely to ease concerns in the oil market about the weakening of global economic growth and its impact on demand.
Beijing will also host a conference this week where policymakers are expected to chart the course for the country's economy in 2025.
China's consumer inflation hit a five-month low in November, while factory deflation persisted, suggesting efforts to support faltering economic demand are having limited impact.