China's demand slump fuels oil price concerns

Bloomberg reports that the markets are concerned about the demand outlook for fuels worldwide, especially in China, at a time when the global oil supply is high.

• A barrel of West Texas Intermediate oil for December delivery costs £55 on NYMEX in New York, down by 0.04%.

• Brent on ICE for January 2025 is priced at £58 per barrel, after an increase of 0.13%.

The strong US dollar, which had been rising since Donald Trump was elected President of the United States and weighed on the prices of commodities denominated in the American currency, has now slightly weakened, bringing some relief to commodity buyers.

Fuel market analysts indicate that oil prices have fluctuated since mid-October, swinging between gains and losses, as investors closely monitored the hostilities in the Middle East, fearing an escalation of conflict in that region and potential disruptions in oil supplies. So far, there have been no significant disruptions in oil supplies.

However, oil consumption is weak in China, which has been the largest importer of this raw material globally until now.

For the next year, the International Energy Agency forecasts an oversupply of oil in global fuel markets.

There are not many 'bullish catalysts' for raising oil prices on which one could rely, he adds.

Analysts at Goldman Sachs Group Inc. have included not oil but gold on their list of the most popular commodities for 2025 and advise investors to "Go for Gold," expecting the price of this precious metal to rise to £2,470 per ounce during Donald Trump's presidency.

"Bet on gold," writes Daan Struyven, a Goldman Sachs analyst, in a market note.

"A structural driver of the gold price forecast—£2,470 per ounce by December 2025—is, among other things, higher demand from central banks," he indicates.