​EBC Markets Briefing | Oil prices firm; analyst upgrade boosted Meta

Oil prices rebounded from a one-week low on Friday. Trump softened threats toward Greenland and Iran, and on some positive movement that could lead to a solution to end Russia's war in Ukraine.

Zelenskiy said on Thursday after talks with Trump in Davos that terms of security guarantee for Ukraine had been finalized, but the vital issue of territory in its war with Russia remains unsolved.

A sweeping proposed reform of Venezuela's hydrocarbons law would allow foreign and local companies to operate oilfields on their own through a new contract model, Reuters reported.

The Trump administration is allowing China to purchase Venezuelan oil but not at low prices. China has secured energy supply at a discount from the countries that are sanctioned by the US.

The EIA said commercial crude stock added 3.6 million barrels during the week ended 16 January, more than triple the 1.1-million-barrel increase analysts forecast – a sign of stronger demand.

Trump said that Iran wants to engage in talks, signalling a potential diplomatic opening after heightened tensions. An aircraft carrier will arrive in the Middle East in the coming days.

Brent crude found support around $63, paving the way for the ongoing rally. If it breaks above $64, we see another leg higher, otherwise it could head back to $63.

Asset recap

As of market close on 22 January, among EBC products, Meta shares led gains. Jefferies analyst doubled down on his "buy" rating for the company, calling the stock a relative bargain compared to its Magnificent 7 peers.

‍Abbott Laboratories saw heavy sell-off on a disappointing fourth-quarter update that included sales misses from its nutrition and diagnostics divisions, and a lacklustre view for its first quarter.

European stocks cheered a framework agreement that had been reached over Greenland. Despite that the outlook for corporate health in the region has slightly worsened, according to forecasts released.

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