Market Report: Slight Increase in Oil Prices Following Eased Inflation

Oil prices rose slightly at the beginning of the week, supported by signs of easing inflation in the United States, which revived hopes for a loosening of monetary policy in the coming year. This could strengthen the global economy and boost oil demand. Brent crude oil futures rose by 26 cents to $73.20 per barrel, while US West Texas Intermediate futures climbed by 31 cents to $69.77 per barrel. Analyst Tony Sycamore of IG Markets stated that both risk assets and US stock futures and crude oil started the week positively. The cooler inflation data helped alleviate concerns following the restrictive rate cut by the Federal Reserve. Additionally, the passage of a bill in the US Senate to end the brief shutdown over the weekend provided support. Last week, oil prices had fallen by more than 2% when the US Federal Reserve gave cautious signals regarding further loosening of monetary policy. Research data from the largest Asian refinery company, Sinopec, which forecasts a peak in Chinese oil consumption in 2027, also pressured prices. In Europe, the oil supply situation eased as the Druzhba pipeline resumed operations. This pipeline transports Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic, and Germany and had been temporarily halted due to technical problems before operations resumed on Saturday. US President Donald Trump on Friday urged the European Union to increase its imports of US oil and gas, otherwise threatening tariffs on EU exports. The European Commission signaled willingness for talks to strengthen energy policy relations. Furthermore, Trump threatened to regain US control over the Panama Canal, leading to a sharp response from the Panamanian President. In the US, the number of active oil rigs increased by one to a total of 483 – the highest level since September, as reported by Baker Hughes.