Oil and palm oil prices fell by 1.5-2% yesterday in the US and Chinese economies

RBD Palm Oil

Published Jan 4, 2024

Tridge summary

Brent oil prices rose at the beginning of trading on the first day of 2024 due to heightened tensions in the Middle East, but ended the day at a 3-week low of $75.8/barrel amidst pessimistic data on the US and Chinese economies. Crude oil supplies are expected to remain stable, but new routes around the Red Sea will increase costs for shipping companies. Additionally, Russian oil exports have increased to a 7-month high, leading to decreased demand for palm and sunflower oil due to improved weather in South America and lower prices in neighboring markets.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Yesterday, the first day of trading in 2024, Brent oil prices began to rise amid heightened tensions in the Middle East, including Iran's deployment of a warship to the Red Sea after the US Navy destroyed three of the four Hussite boats that attacked the Danish container ship Maersk Hangzhou. . However, at the end of trading, quotations fell by 1.5% to a 3-week low of $75.8/barrel (-6.6% for the week) amid pessimistic data on the US and Chinese economies. S&P's index of business activity in the US industrial sector unexpectedly fell to a six-month low of 47.9 in December, although the market had expected it to rise to 48.4. At the same time, for China, this index was reduced by 0.2 to a 6-month low of 49, contrary to expectations for its increase to 49.6. Experts believe that crude oil supplies will remain stable, although new routes around the Red Sea will increase costs. Denmark's Maersk and Germany's Hapag-Lloyd have announced that their container ships will avoid traffic ...

Source: Graintrade