January 10, 2025

Global Commodities: Right on cue

12 minutes

Speaker:

Natasha Kaneva, Head of Global Commodities Research

Between December 23 and January 8, oil prices rose over 6%, with Brent hitting $77/bbl and WTI nearly $75/bbl, a three-month high. The gap between realized and forecasted prices, which widened to nearly $10 last year, has now closed, aligning Brent with our $75 fair value for January. This price action is likely driven by concerns over supply disruptions from tightening sanctions, low oil stockpiles, freezing temperatures in the US and Europe, improved sentiment on China’s stimulus, cleaner positioning, and CTA short-covering flows. We expect prices to remain stable for most of the year, dipping below $70 in the final quarter, averaging $73 for the year.

This podcast was recorded on 10 January 2025.

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