Oil and Gas Extend Monthly Losses as Supply Outpaces Demand

Crude benchmarks extended their recent divergence from other commodities in January, as oil prices softened despite firmer metals and North American gas earlier in the period. U.S. supply growth, increased flows from Canada and Guyana, and OPEC’s willingness to keep barrels on the market collectively pushed West Texas Intermediate Oil – US Crude toward the US$55/bbl area, underscoring a market where supply continues to outrun consumption growth. Global benchmark Oil – Brent Crude also faced pressure as resilient North American producers, having adapted through prior downturns with cost efficiencies and capital discipline, added to a structurally well-supplied backdrop. Meanwhile, Natural Gas in North America moved against this oil trend earlier in the month, but remains influenced by weather-driven demand and evolving export capacity.

Over the past month, price moves across the energy complex have been negative, reflecting the weight of abundant supply and cautious demand expectations. Oil – US Crude (CM:CL) is down about 4.1% over one month, while Oil – Brent Crude (CM:BZ) has retreated roughly 3.4%, with both contracts flashing a short-term Sell and Sell signal, respectively, on 1-day technical analysis—suggesting continued near-term downside risk or at least limited buying momentum. Natural Gas (CM:NG) has underperformed sharply, sliding about 20.6% over the month amid ample inventories and moderating weather concerns, and is likewise posting a 1-day technical Sell indication, which may point to lingering bearish sentiment despite potential volatility catalysts ahead in the winter season. Investors can explore more updates, prices, and analysis across global markets at Commodities.