Energy Demand Concerns Weigh on Crude Prices

Group 1 - Crude oil and gasoline prices are under pressure due to concerns over energy demand following stagnant US retail sales in December, which were unchanged month-over-month, contrary to the expected increase of +0.4% [1][2] - The stagnation in retail sales may lead to a downward revision in Q4 GDP, further negatively impacting energy demand and crude prices [2] - Geopolitical tensions, particularly between the US and Iran, are adding a risk premium to crude prices, with fears of military action potentially disrupting key shipping lanes and affecting Iran's crude production of 3.3 million barrels per day [3] Group 2 - An increase in Venezuelan crude exports, rising to 800,000 barrels per day in January from 498,000 barrels per day in December, is contributing to a boost in global oil supplies, which is bearish for prices [4] - Ongoing geopolitical issues, particularly the unresolved territorial disputes between Russia and Ukraine, are likely to maintain restrictions on Russian crude, which supports oil prices [5]