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Brent oil is one of the most sought after commodities in the world today. Its applications range from energy production to its application as a feedstock for transportation fuels and petrochemical products such as plastics, solvents and adhesives. As a result, the oil industry is one of the most powerful sectors of the world economy, and changes in benchmark oil prices have a major impact on almost all sectors of production and consumption. More than four billion tons of oil are produced worldwide each year, with the Middle East having the largest share of proven oil reserves, close to 50%.

Due to pressure from worries about China's declining demand and a stronger US dollar, Brent crude oil futures fell 2.1% to close at $71 a barrel on Friday, recording a 4% weekly loss. Due to ongoing demand problems and weaker factory output, China's crude processing fell 4.6% in October. Furthermore, both OPEC and the IEA lowered their projections for the growth of world demand; the IEA predicted a supply surplus of one million barrels per day in 2025. Citing difficulties in important countries like China and India, OPEC also lowered its demand projections for 2023 and 2025. The stronger US currency, which rose to a two-year high and diminished the attraction of dollar-priced goods, is another factor driving up costs. Data from the US Energy Information Administration showed that US crude inventories rose by 2.1 million barrels last week, exceeding expectations of a 1.9 million-barrel rise.

Brent crude prices reversed earlier gains and sank about 1% to below $87 per barrel on Friday, as forecasts of ongoing robust Russian supply outweighed better-than-expected fourth-quarter US GDP figures and optimism for continued demand improvement in major petroleum importer China. Oil loadings from Russia's Baltic ports are expected to increase by 50% in January compared to the previous month, as exporters try to fulfill high demand in Asia while benefiting from increased global energy prices. Traders speculated that Urals and KEBCO crude oil loadings from Ust-Luga between February 1 and 10 could increase to 1.0 million tonnes, up from 0.9 million in January. Meanwhile, when OPEC meets next, it is expected to maintain current oil output levels, keeping supplies tight. For the week, the US oil benchmark is down more than 1%.