Oil prices show minimal fluctuation in response to recent market data, including the growth of US stockpiles.
Brent crude, the global standard, experienced a slight decrease of 0.1% to just under $83 per barrel, following a near 1% increase on Tuesday. The US equivalent, West Texas Intermediate, dropped by 0.2% to below $78.
This market behaviour aligns with a report from the American Petroleum Institute, as covered by Bloomberg News, indicating an 8.5 million barrel rise in US crude inventories last week.
On the other hand, OPEC’s leading representative mentioned on Tuesday that they anticipate a robust expansion in global oil demand. Yet, OPEC’s recent report suggests that adherence to the latest supply reduction agreements among its members has been limited.
In a separate statement, the International Energy Agency, based in Paris, indicated a stable market outlook for this year, forecasting that the expected increase in supply will adequately meet global demand.
Gas prices decrease, contrary to expectations of increased demand during the summer season.
As spring approaches, wholesale gas prices continue to decline, yet there are indications that prices may rise later in the year.
Currently, Europe’s gas storage facilities are approximately 67% full. This level is typical for this time of year and matches last year’s capacity, as reported by Gas Infrastructure Europe.
Morgan Stanley analysts suggest that to maintain the same stockpile levels for the upcoming winter, Europe needs to import 5% more liquefied natural gas this year compared to the summer of 2023. They predict that by the end of this winter, Europe’s gas storage will be 51% full, slightly lower than the previously forecasted 53%.
Independent Commodity Intelligence Services, a consultancy firm, anticipates that gas demand in the EU and the UK will likely start to increase later in the year.
In the market, Dutch front-month futures, which serve as Europe’s benchmark, have recently decreased by 1.7% to around €25 per megawatt hour. The UK’s equivalent has seen a 1.9% drop.
Since mid-October, European gas prices have fallen by 53%, and they are currently 65% lower than just before Russia’s invasion of Ukraine in February 2022.
