Oil under pressure: Rise in Saudi exports exacerbates concerns over supply glut.

Crude oil prices recorded a slight decline during trading on Wednesday, marking the third consecutive day of losses this week, influenced by growing concerns about the surplus of oil supply in the markets this year.
Performance of Oil Prices in Global Markets
Futures contracts for U.S. crude oil fell by 0.36% to reach $75.58 per barrel, while Brent crude contracts dropped by 0.26% to record $79.13 per barrel. This decline reflects ongoing market worries regarding the anticipated increase in oil supply expected in 2025.
Factors Influencing the Decline of Oil Prices
Oil prices have come under increasing pressure due to reports indicating that Saudi crude oil exports rose to their highest level in 8 months in November, reaching 6.206 million barrels per day, compared to 5.925 million barrels per day in October, an increase of 4.7%, according to data from the Joint Oil Data Initiative (JODI) as reported by Reuters. This increase heightens concerns about supply surplus, especially as global demand remains stable at modest levels.
Additionally, markets are anticipating the repercussions of U.S. President Donald Trump's declaration of a national emergency in the energy sector, which he initiated upon taking office. This move raises questions about the impact of new U.S. policies on global oil supplies, adding to the uncertainty and negatively affecting prices. For a deeper analysis of U.S. energy policies, click here.
Performance of Other Energy Contracts
Heating oil contracts saw a slight increase of 0.10%, bringing the price per gallon to $2.4857, while gasoline contracts fell by 2.49% to record $2.0631 per gallon. In contrast, natural gas contracts experienced significant gains of 5.22%, with the price per million British thermal units reaching $3.952.
Future Outlook for the Oil Market
According to analysts in the energy sector, oil price volatility is expected to continue in the coming months, with anticipation surrounding the next OPEC+ meeting, which may bring new decisions regarding production levels. At the same time, any geopolitical developments could lead to sudden changes in price movements.
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