Crude Rallies on Stronger Energy Demand and Index Buying of Crude Futures

Group 1 - Crude oil and gasoline prices are rising due to stronger-than-expected US economic data indicating increased energy demand and upcoming rebalancing of commodity indexes, which will lead to buying of oil contracts [2][3] - Citigroup forecasts that the BCOM and S&P GSCI indexes will see inflows of $2.2 billion in futures contracts over the next week for rebalancing purposes [3] - Recent US economic indicators show a stronger labor market, with December Challenger job cuts down 8.3% year-over-year to 35,553, and Q3 nonfarm productivity rising 4.9%, the largest increase in two years [4] Group 2 - The US Energy Department's decision to selectively roll back sanctions on Venezuelan crude exports may increase global oil supplies, putting pressure on crude prices [5] - Morgan Stanley has revised its crude price forecasts downward, predicting a global oil market surplus that will peak mid-year, with Q1 forecast cut to $57.50 per barrel and Q2 forecast to $55 per barrel [6]