Its prices oil know an increase today (09.12.2024), after the fall of the regime of its president SyriaBashar al-Assad, caused more uncertainty in the Middle East, although gains were limited by a weaker demand outlook for next year.
In the shadow of developments in Syria, Brent crude futures rose 36 cents, or 0.51%, to $71.48 a barrel while U.S. crude futures gained 38 cents, or 0.57%, to $67.58. per barrel.
Syrian rebels announced yesterday (8.12.2024) on state television that they had overthrown President al-Assad.
“The development in Syria has added a new layer of political uncertainty to the Middle East, providing some support to the market,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.
“But Saudi Arabia’s price cuts and the extension of OPEC+ output cuts last week underscored weak demand from China, suggesting the market may ease towards the end of the year,” he said, noting that investors are watching for the first signs of any impact on markets from US President-elect Donald Trump’s expected energy and Middle East policies.
Saudi Aramco, the world’s biggest crude exporter, cut January 2025 prices to Asian buyers to the lowest level since early 2021, it said on Sunday, as weak demand from top importer China weighed on the market.
On Thursday, OPEC+ delayed the start of oil production increases by three months, until April, and extended the full unwinding of production cuts by one year, until the end of 2026.
OPEC+, which accounts for about half of global oil production, had planned to begin unwinding the cuts from October 2024, but slowing global demand – particularly from top crude importer China – and rising production elsewhere in they forced him to postpone the project several times.