My expectations for January 2025 West Texas Intermediate (WTI) oil prices are nearly the same as they were for December 2024. I have raised my expectations slightly by $2.50 per barrel to $67.50 to $77.50. Although I expect WTI to remain below $75 for most of the month, I have raised my upper limit slightly because WTI has been acting strong these past few days and is currently about $71.85 as I write this article.
As expected, WTI prices were in the high $60s or low $70s for the month of December. There have been no significant changes. Consequently, I have not changed my outlook very much.
Going into 2025, I am cautious. The first quarter of any year is typically more challenging after the high winter demand period that is followed by the refinery maintenance season. The new US administration may also bring about changes that affect oil prices.
Eric Nuttall and Amrita Sen, in a forty-minute YouTube video, discussed OPEC, oil demand, and Canada’s role. Both Nuttall and Sen tend to be more bullish than the people I follow closely. That said, it is always helpful to keep an open mind and consider the viewpoints of others, both bulls and bears.
I want to wish everyone a Happy, Healthy, and Prosperous New Year!