Oil prices continued to fall, and economic headwinds affected the demand outlook

(1) Oil prices fell for the second day in a row on Monday as unfavorable economic conditions weighed on the outlook for global oil demand, outweighing geopolitical concerns in the Middle East and attacks on Russian fuel export terminals over the weekend. (2) The main U.S. crude oil Market Maker contract is currently down 0.9%, trading near $72.97 / barrel, and the main Brent crude oil Market Maker contract is currently down 0.36%, trading near $77.80 / barrel. (3) IG analyst Tony Sycamore said, “Despite the ongoing geopolitical tensions in Europe and the Middle East, this morning’s weak opening speaks volumes about the current confidence issue in the crude oil market.” (4) Ukrainian drones allegedly attacked a huge Russian fuel export terminal, but oil prices barely Fluctuation. A fire at the Baltic terminal of Novatek, Russia’s largest liquefied natural gas (LNG) producer, forced the company to suspend some of its operations. (5) In the Middle East, where the war in Gaza continues, the United States on Saturday again hit an anti-ship missile prepared to be launched into the Gulf of Aden by Houthi rebels in Yemen. (6) Houthi attacks in the Red Sea and the Gulf of Aden disrupted global trade and tightened the European and African crude markets, with the premium of the Brent front-month contract over the six-month contract reaching $1.99 on Friday, the widest since November. The price is backwardation, indicating that the market believes that the supply of crude oil for spot delivery will be tighter. (7) IG’s Sycamore said oil fundamentals still keep oil prices from rising. He added that oil “production has increased, while the growth outlook for large Asian countries and Europe is mixed at best, and this week’s GDP data is expected to show a significant slowdown in US economic growth.” (8) Data released by Baker Hughes on Friday showed that the number of active oil rigs in the U.S. fell by two to 497 last week, the lowest since mid-November. (9) JPMorgan analysts said in a note. “We believe that the reduction is due to cold weather that prevented the rig from starting safely”