Core Viewpoint - Oil prices are expected to decline this year due to an increase in supply leading to a market surplus, despite ongoing geopolitical risks that may cause volatility [1] Supply and Demand - A wave of supply is anticipated to create a surplus in the oil market this year [1] Geopolitical Risks - Geopolitical tensions related to Russia, Venezuela, and Iran are expected to continue influencing market volatility [1]

Oil prices continue to trade sideways, he said, noting that near-term supply disruption risks remain limited. Julius Baer expects oil prices to trade in the high $50s for much of 2026. The oil market seems "unbothered and unimpressed" by the recent U.S. intervention in Venezuela, Julius Baer's Norbert Rücker wrote in a research note. "Venezuela's oil exports are too small for a full disruption to matter in the current environment of ample supplies," the head of economics and next generation research said. ...

EOG Resources' finance chief Ann Janssen said on Wednesday oversupply and potentially higher production from Venezuela are pushing oil prices down, a trend that is likely to persist for several more quarters. ...

Core Insights - The report highlights a significant increase in the Hang Seng Index (HSI) by 2.8% year-to-date, indicating a positive market sentiment [2] - Commodity prices show mixed performance, with gold increasing by 1.0% year-to-date, while Brent crude oil has decreased by 0.5% [3] - Key macroeconomic indicators from the US show a stable personal income growth of 0.4% month-on-month, while the unemployment rate slightly decreased to 4.6% [4] Index Performance - The HSI closed at 26,338, reflecting a 2.8% increase for the day and year-to-date [2] - The HSCEI and MSCI HK also showed positive movements, increasing by 2.9% and 2.4% respectively [2] - In contrast, the FTSE China A50 and CSI 300 experienced slight declines of 0.7% and 0.5% respectively [2] Commodity Price Performance - Brent crude oil is priced at US$61 per barrel, down 0.4% for the day and 0.5% year-to-date [3] - Gold is trading at US$4,365 per ounce, with a year-to-date increase of 1.0% [3] - Copper and aluminum prices have shown slight increases, with copper at US$12,470 per ton and aluminum at US$2,991 per ton [3] Key Macro and Earnings Releases - The China PMI Services index reported at 52.1, indicating expansion in the services sector [4] - The US PCE Price Index year-on-year stands at 2.8%, reflecting stable inflation [4] - The ISM Manufacturing index is slightly below consensus at 48.2, indicating contraction in the manufacturing sector [4] Key Events - Upcoming corporate access events include meetings with key figures in the consumer sector scheduled for January [5]