The Mar’25 Brent futures contract was supported this morning, rising from around $74.80/bbl at 0630 GMT up to $75.60/bbl at 1050 GMT (time of writing). Market sentiment saw an optimistic start to the new year, potentially bolstered by expectations that China may introduce additional measures in 2025 to stimulate economic growth. In the news today, the International Longshoremen’s Association (ILA), a union representing cargo handlers at every major Eastern US and Gulf Coast port, is threatening to strike on 15 January, according to Bloomberg. Following a three-day strike in early October, the ILA agreed to delay further action until mid-January, now pushing for stronger protections against labour automation at ports. In other news, after the suspension of the Ukrainian natural gas transit deal, Moldova’s breakaway region of Transdniestria has cut off supply of heating and hot water to households, with Russia previously pumping about 2 billion cubic metres of gas per year to Transdniestria, as per Reuters. European front-month gas prices rose 4.3% on the first trading day of the year, the highest since October 2023, Bloomberg revealed. Finally, India’s gasoline and diesel demand saw respective increases of 9.8% and 4.9% in December y/y, according to the Economic Times. The report attributed the increase in demand to holiday travel, citing petrol sales of three state-owned fuel retailers. At the time of writing, the Mar/Apr’25 and Mar/Sep’25 Brent futures spreads stand at $0.48/bbl and $2.23/bbl, respectively.
