06 Jan 2025

• WTI price could strengthen as colder weather in the Northern Hemisphere are expected to increase heating Oil demand.
• Oil prices increased as a result of Beijing's economic stimulus measures aimed at revitalizing its struggling economy.
• Goldman Sachs projects that Iran's exports will decline by Q2 due to stricter sanctions under the incoming Trump administration.
• West Texas Intermediate (WTI) Oil is currently trading at approximately $73.30 per barrel during the Asian trading hours on Monday, approaching its highest point since October 2024. Investors are attentively observing the potential effects of colder weather in the United States, as well as anticipated increases in heating oil demand in Europe, which may further support crude oil prices.
  
  Moreover, Beijing's economic stimulus measures are enhancing fuel demand in the largest crude importing nation. In an effort to rejuvenate its faltering economy, Beijing is intensifying its fiscal stimulus, having announced on Friday a significant increase in funding through ultra-long-dated treasury bonds in 2025, aimed at encouraging business investment and initiatives to boost consumer spending.
• The Shanghai Stock Exchange has pledged to enhance the opening of capital markets during discussions with foreign institutions, as reported by Reuters. The fundamentals of China's economy remain robust, showcasing resilience in the face of a complex global landscape.
  
  On Friday, the Financial Times indicated that the People's Bank of China (PBoC) is likely to implement an interest rate reduction at a suitable moment this year. Given the close trade ties, fluctuations in China's economy significantly influence Australian markets.
  
  Goldman Sachs projects that Iran's production and exports will experience a decline by the second quarter, attributed to anticipated policy changes and stricter sanctions under the incoming administration of US President Donald Trump. Their forecast suggests that Iran's output may drop by 300,000 barrels per day, reaching 3.25 million bpd by the second quarter.