Crude Oil prices in the US minimally rose in January 2024

In January 2024, crude oil prices had seen an increase, largely due to concerns about disruptions to the global energy supply disruption, the Red Sea Crisis, and distressing winter season. Procurement Resource reported a 1.65% hike in the US crude oil prices from December 2023 to January 2024.

The adverse weather conditions, particularly in North Dakota, resulted in a significant reduction of oil output, with a substantial proportion of production halted.

Market analysts observed that these events led to serious considerations of potential supply shortages. Additionally, the cold snap was not only affecting North Dakota but was also causing production difficulties in other states.

The rise in stock market performance was interpreted as a signal of expected increased demand in the near future, suggesting a growing optimism about the economic outlook. Despite this, ongoing geopolitical tensions continued to threaten stability, with persistent conflicts in the Middle East and attacks on commercial shipping raising further security concerns.

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Conversely, some market experts suggested that underlying oil market fundamentals could place downward pressure on prices, citing an increase in oil production and uncertain economic growth projections in key regions like China and Europe. This was alongside anticipations of a report indicating a slowdown in U.S. economic growth.

On the flip side, production resumed at a major oilfield in Libya after protests that had stalled operations since the beginning of the year came to an end, signaling a potential ease in supply-side constraints.

According to the article by Procurement Resource, in January 2024, US crude oil prices rose by 1.65%, driven by supply concerns from geopolitical tensions and harsh winter effects on production. Market optimism was cautious, with potential economic slowdowns threatening demand, while resumed operations in a key Libyan oilfield suggested some easing of supply constraints.