INE Crude Oil Futures
INE Crude Oil Futures is one of the most actively traded contracts in the global commodities landscape. The significance of Crude Oil positions this Chinese Crude Oil Futures as a pivotal force in the dynamic energy market.
This article aims to delve into the performance of Crude oil futures throughout 2023 and look toward the market outlook for Crude Oil Futures in 2024.
Trading Crude Oil Futures from INE
The Shanghai International Energy Exchange (INE China) offers several commodities futures contracts for both international traders and domestic traders in China. This includes crude oil futures contracts such as Medium Sour Crude Oil Futures, Low Sulphur Fuel Oil Futures, and other popular commodity futures like Bonded Copper Futures, TSR 20 Rubber Futures, and the latest Containerized Freight Index Futures.
Since these commodities futures are available on different exchanges, traders can look to utilizing it for cross-arbitrage trading, such as refined copper arbitrage trading and rubber cross-arbitrage trading.
Traders would need to go through an Overseas Intermediary like Orient Futures International Singapore to trade crude oil futures from INE through either the QFI China Scheme or Internationalized Products from China.
Click here to know more about Brent Crude Oil Futures Contract, Brent Crude Oil Options and Brent Crude Oil Futures Symbol.
Crude Oil Futures 2023 Performance
According to Reuters, Crude Oil Futures experienced a decline of over 10% in 2023. It has been a volatile year marked by geopolitical tensions and concerns about the oil output levels of major producers worldwide.
Geopolitical tensions in the Middle East intensified on the final day of 2023 as Israel escalated its attacks in southern Gaza, contributing to upward pressure on oil prices.
Data released by the United States Energy Information Administration (EIA) indicated strong oil demand in October, providing some support to prices in intra-day trading.
Total US oil demand rose by 3.4% in October compared to the previous year. In October, US crude oil output slightly decreased to 13.248 million barrels per day, following monthly records set in August and September.
Crude Oil News
Crude Oil Supply and Demand
According to Reuters, the OPEC+ is cutting output by around 6 million barrels per day, constituting approximately 6% of global supply.
However, weakening demand for OPEC's crude in the first half of 2024 coincides with a decline in the group's global market share to the lowest level since the pandemic, partly due to output cuts and Angola's departure from the organization.
The ongoing war in the Middle East has also raised concerns about potential supply disruptions in the final months of 2023, with expected implications extending into 2024.
INE Crude Oil Prices
According to East Money, INE Crude Oil Futures price fluctuated and closed at 555.7 yuan, which is an increase of 0.58% or 3.2 yuan.
Crude Oil Futures 2024 Market Outlook
According to Euronews Business, it is anticipated that there will be ample oil supply this year due to a slowdown in economic activity, coupled with increased production from the United States, which recently reached its highest at 13.24 million barrels per day.
Additionally, countries such as Brazil, Guyana, Norway, and Canada are expected to contribute to maintaining sufficient oil supply. This perspective also addresses the likelihood of oil prices reaching $100 in 2024. Without a geopolitical flashpoint, the chances of such an occurrence are considered almost zero.
The International Energy Agency (IEA) anticipates global oil demand to increase next year, projecting a rise of 1.1 million barrels per day (mbpd) in 2024. The IEA report notes that production from non-OPEC (Organization of the Petroleum Exporting Countries) producers will also contribute 1.2 mbpd to global supply. OPEC's outlook for 2024 differs slightly, forecasting an uptick of 2.25 mbpd.
From a price perspective, technical analysis indicates substantial support at $65 for West Texas Intermediate (WTI) and in the mid-$60 range for Brent Crude Oil, in the event of a global recession.
Acknowledging the global economic slowdown, Goldman Sachs has adjusted its forecast, expecting Brent to average $80/$81. This aligns with the IEA's forecast, which envisions Brent at $82.57 per barrel in 2024. Barclays maintains a higher projection, foreseeing oil averaging $93 in 2024, while S&P Global considers $85 to be a more fitting estimate.
Start Trading With Orient Futures Singapore
Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
