Oil prices experienced a near 2 percentage points increase on Monday, rebounding after three consecutive weeks of declines. Despite this rise, investor concerns persist. Brent crude futures settled at $76.05 per barrel, reflecting a $1.36 rise. WTI crude similarly advanced, gaining $1.41 to reach $72.47 per barrel.
Market analysis suggests a growing recognition that tariff-related news is likely to remain a recurring theme in the coming weeks and months. This awareness may be leading investors to adopt a less reactive approach.
China’s retaliatory tariffs on selected US exports came into effect on Monday, with no apparent progress in ongoing discussions between Beijing and Washington.
Tightened supplies of Russian crude and gasoline exports contributed to rising Middle East cash crude prices in early trading. Furthermore, sanctions imposed on Russian oil trade on 10th January have disrupted Moscow’s supply chains to its primary clients, China and India.
Driven by concerns surrounding Russian and Iranian oil supplies due to sanctions, as well as escalating tensions in the Middle East, oil prices further rose on Tuesday. Brent crude futures increased by $0.75, settling at $76.80 a barrel. WTI also rose by $0.72, to settle at $73.19. This marked the third consecutive day of gains for both benchmarks.
US sanctions imposed on tankers, producers, and insurers have caused significant disruptions to Russian oil shipments destined for major importers, including China and India.
Further worsening supply concerns is the potential for renewed conflict in the Middle East. Israeli Prime Minister Benjamin Netanyahu issued a statement indicating that the ceasefire in Gaza would be terminated if Hamas did not release Israeli hostages by noon on Saturday.
In its Short-Term Energy Outlook, the US Energy Information Administration (EIA) projected that both global oil supply and demand would reach record levels in 2025 and 2026. Specifically, the EIA forecasts total world petroleum production to increase from a record 102.8 million barrels per day (bpd) in 2024 to 104.6 million bpd in 2025 and further to 106.2 million bpd in 2026. Global petroleum consumption is also expected to rise from a record 102.8 million bpd in 2024 to 104.1 million bpd in 2025 and 105.2 million bpd in 2026.
On Wednesday, oil prices retreated after a report indicated an increase in US crude stockpiles, raising concerns about supply and demand dynamics. Brent futures were down by 1%, reaching $76.23 a barrel, while US West Texas Intermediate (WTI) crude dropped by 1.20%, to $72.44 a barrel. These declines ended a three-day streak of gains.
The American Petroleum Institute (API) reported a 9.4 million barrel increase in US crude inventories, which, along with concerns over trade tariffs, contributed to the downward pressure on prices.
In the early hours of Thursday, Brent crude was seen to have opened at $75.02 per barrel and WTI crude at $71.19, still reflecting sessions of decline when compared to where it was on Monday.
It has been yet another action-packed week in the world of cryptocurrency, with major developments, announcements, and shifts in regulatory frameworks taking centrestage. Among the most significant news is from the Federal Deposit Insurance Corporation (FDIC), an independent U.S. government agency that primarily serves to insure deposits in U.S. banks and savings institutions, ensuring that depositors are protected in case of bank failures. The FDIC has announced plans to revise its guidelines and allow banks to actively engage in cryptocurrency-related activities. This shift could be a game-changer, as it would open the doors for more traditional banking institutions to integrate crypto services, potentially expanding the accessibility and legitimacy of cryptocurrencies in the mainstream financial system.
In another noteworthy development, Elon Musk, the CEO of Tesla and SpaceX, once again made waves with his comments supporting the idea of placing U.S. Treasury transactions on a blockchain. Musk advocates for using blockchain technology to achieve full transparency in how Treasury operations are conducted. This move, if implemented, could drastically change the way public funds are tracked and managed, offering a level of accountability that is often missing in current systems. Should this vision come to life, it may also make it more difficult for scandals like the alleged USAID controversy to occur again, particularly within U.S. government agencies. The increased transparency could hold parties to a higher standard and reduce opportunities for misuse.
Meanwhile, in the world of cryptocurrency-based financial products, Trump Media has announced its intention to launch a Bitcoin Plus ETF. The fund would offer investors a unique opportunity to get exposure to Bitcoin alongside other assets, providing a diversified entry point into the world of crypto investment. This move signals growing institutional interest in cryptocurrency and points to a larger shift towards more regulated, structured crypto investment options. As traditional financial markets continue to incorporate digital assets, it’s clear that the crypto ecosystem is maturing.
In legal news, Alexey Pertsev, the developer behind the controversial privacy tool Tornado Cash, was released from prison. Pertsev had been detained due to his association with Tornado Cash, which was sanctioned by the U.S. government for allegedly facilitating money laundering activities. His release comes as part of ongoing discussions surrounding the regulation of decentralised finance (DeFi) tools and the extent to which developers should be held responsible for the actions of users on their platforms. This development is indicative of the growing tension between innovation in the crypto space and the need for compliance with traditional financial regulations.
On the bankruptcy front, FTX, the once-prominent cryptocurrency exchange run by Sam Bankman-Fried (SBF), continues its road to recovery after its spectacular collapse. The exchange, which filed for bankruptcy in 2022, has confirmed it will begin repaying customers on February 18, 2025. This marks a significant milestone for the victims of FTX’s crash, who have been waiting for compensation after the exchange’s sudden and dramatic downfall. The ongoing FTX saga has been one of the most high-profile incidents in crypto history, serving as a cautionary tale for both investors and regulators alike.
MicroStrategy, the business intelligence firm led by Michael Saylor, has officially rebranded itself as Strategy. The company made headlines once again by purchasing an additional 7,633 Bitcoin worth approximately $742 million. While this move further solidifies Strategy’s position as a major player in the Bitcoin space, the timing has sparked controversy. As with many significant Bitcoin purchases in the past, the announcement caused a sharp dip in the market. As often happens in crypto, short-sellers, day traders, and speculators quickly capitalised on the price drop, further driving the volatility in the market. The volatility of the crypto space is nothing new, but it highlights the risk and unpredictability that still permeate digital asset investments.
The state of North Carolina has introduced a bill aimed at creating a strategic Bitcoin reserve for the state. This bill, if passed, would position North Carolina as one of the first states to formally adopt Bitcoin as part of its public financial reserves. Such a move could lead the way for other states to consider adding Bitcoin and other cryptocurrencies to their state funds, reflecting the growing recognition of crypto as a viable store of value.
Hong Kong made headlines by officially recognising Bitcoin and Ethereum as valid assets for securing an Investment Visa. This move shows a broader acceptance of digital currencies within global financial systems and may encourage more crypto entrepreneurs to set up businesses or investments in the region. Hong Kong’s decision to include Bitcoin and Ethereum in its Investment Visa criteria is a significant step toward integrating cryptocurrency into mainstream financial infrastructure in Asia.
As for market performance, Bitcoin has seen a dip of about 2.5% over the last week, currently hovering around the $96,000 mark. The flagship cryptocurrency, which had been experiencing a rally earlier, has now retraced some of those gains. Ethereum, on the other hand, has experienced an even steeper drop, falling about 5.3% and currently sitting at around $2,600. While these dips are certainly a reminder of the inherent volatility of the cryptocurrency market, they are also typical of the cyclical nature of digital asset prices. Market fluctuations like these highlight the ongoing challenges of predicting trends in the crypto space.
As always, the cryptocurrency market remains highly volatile, and while it offers significant potential for growth, it also comes with considerable risk. Investors and traders alike are reminded to exercise caution and remain aware of the market’s unpredictable nature.
