Oil prices rose nearly 2% on Thursday, January 2, as the U.S.
Department of Energy (DoE) released its weekly inventory report.
This report had a significant impact on market behavior, prompting traders to closely monitor the situation.The disruption of Russian natural gas supplies through Ukraine to European clients has raised concerns.
Such interruptions are expected to drive hydrocarbon prices higher in Europe.On the New York Mercantile Exchange (Nymex), February WTI crude oil futures increased by 1.97%, or $1.41, closing at $73.13 per barrel.
Meanwhile, March Brent crude traded on the Intercontinental Exchange (ICE) rose by 1.73%, or $1.29, finishing at $75.93 per barrel.Ritterbusch noted that short-term price dynamics have shifted upward, making todays trading particularly responsive to the supportive DoE report.The overall petroleum complex begins the year strongly, with enough momentum to push WTI slightly above $74 before this latest surge loses steam.
According to Bloomberg, President Joe Biden plans to issue a decree.Oil Prices Surge Nearly 2% Amid U.S.
Inventory and European Gas Supply Disruptions.
(Photo Internet reproduction)The decree will permanently ban new offshore oil and gas developments in certain U.S.
coastal waters.
This action will create enduring protections for sensitive marine areas during his final weeks in office.Energy and Economic ChallengesUkraine halted Russian gas supplies after a pre-war transit agreement expired at the end of last year.
This move will increase the European Unions reliance on gas imports.It will also ensure that energy prices remain significantly higher in Europe than in the U.S., as noted by Capital Economics.
Consequently, natural gas prices in Europe reached their highest level since October 2023.On the demand side, Chinese President Xi Jinping acknowledged the challenges facing the worlds second-largest economy.
He expressed optimism that proactive policies and ongoing structural reforms could overcome these obstacles.In a televised New Years speech, he stated that current economic operations encounter new situations and uncertainties from external environments but emphasized that hard work could address these issues effectively.