From Quiver Quantitative:

Oil prices dipped approximately 1.1% as shipping disruptions in the Red Sea eased, with Brent crude futures dropping to $78.75 a barrel, and U.S. WTI crude futures declining to $73.31. Despite U.S.-led efforts, coordination in the region remains limited, impacted by the conflict in Gaza.
Key Points:
– Major shipping companies have resumed regular routes, lessening supply disruption fears
– Ongoing conflict in Gaza casts uncertainty; Israeli ground war is expected to continue
– US crude stockpiles unexpectedly rose by 1.84 million barrels.
US fuel stockpile data and global responses will be crucial for short-term price direction.

The oil market is anticipated to recover in the new year, with prospects of monetary easing in the U.S. and Europe in 2024, potentially boosting fuel demand. Seasonal factors such as increased kerosene demand during the northern hemisphere’s winter could also contribute to a rebound in oil prices. Watching for the forthcoming U.S. government data on fuel stockpiles, after an unexpected rise in crude stocks, will give insight into market recovery.



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