Crude on course for 3% weekly loss

Quantum Commodity Intelligence – Crude oil futures were heading lower again during Friday’s session and were on course for a 3% loss through the week as attention turned back to macroeconomic factors weighing on demand growth estimates.

Front-month Feb25 ICE Brent futures were trading at $72.79/b (0800 GMT) versus Thursday’s settle of $73.39/b.

At the same time Feb25 NYMEX WTI was trading at $68.93/b versus Thursday’s settle of $69.38/b, while the Jan25 contract settled at $69.91/b at last night’s expiry.

It comes following Wednesday’s Fed rate cut in which the US central bank signalled it was expecting to take a more measured approach toward easing monetary policy in 2025, a move that precipitated selling pressure.

Wider risk-off sentiment and year-end selling have been seen across capital markets since, with Asian shares trading lower at fresh three-month lows during Friday’s session ahead of US inflation data expected later in the day.

Dollar strength is acting as a handbrake on any further upside for crude prices in Friday’s session, with the DXY having touched a two-year high overnight above 108.

That was not helped by Chinese state-run energy firm Sinopec adding its voice to the list of those downbeat on the country’s oil demand expectations as its research arm said Thursday that it expects sales to have peaked as early as 2027 as gasoline and diesel demand drop.

Israel targeting Yemeni port infrastructure threatened to add some bullishness to the mix during Thursday’s session, adding to general geopolitical instability in the region as efforts to secure a ceasefire agreement in Gaza continue.