Energy markets start 2023 with the largest weekly decline

Energy futures contracts for crude oil, refined products and natural gas fell in the new year, as traders reconsidered short-term concerns in terms of cold weather, supply shortages and fire sales of contracts.

Prices rose last year due to fears that Europe would freeze due to a shortage of Russian fuel, at a time when OPEC + cut production targets and lower stocks of US derivatives raised the prospect of imposing restrictions on fuel exports.

These fears proved to be exaggerated, sending prices plummeting. The results of a Archyde.com survey indicated that European gas stocks rose to more than the usual seasonal levels, Saudi Aramco this week cut oil shipping rates to Asia, and the production of members of the Organization of the Petroleum Exporting Countries (OPEC) increased surprisingly last month.

Warmer-than-normal temperatures in the United States and Europe have reduced the need for gas and oil for heating purposes.

US natural gas fell 18 percent in the first week of this month, which is the largest faltering recorded at the beginning of any year, according to Eikon Refinitiv data. The decline of 12 percent in oil derivatives futures contracts was the largest drop to start the year since 1991. Refining oil derivatives consumption usually rises due to the impact of winter demand.

West Texas Intermediate crude, Brent crude and US gasoline were subjected to their largest weekly decline at the beginning of the year since 2016, as West Texas Intermediate crude fell by 7.4 percent, Brent crude by 7.3 percent and US gasoline by 7.3 percent. percent.