- Oil prices edge down by less than 0.50%, reversing gains from a positive Asian session earlier.
- Markets remain range-bound, awaiting direction as final US data is released.
- The US Dollar Index approaches a fresh two-year high, supported by upbeat revisions to Durable Goods data.
Crude Oil prices remain under pressure on Monday, with WTI hovering around $69, as earlier gains from the Asian session quickly faded in the US trading hours. Recent data from Vortexa, reported by Bloomberg, indicates a 7% weekly increase in floating Crude volumes, pointing to stalling demand once again.
The US Dollar Index (DXY) has rallied following the preliminary November US Durable Goods release. While the latest numbers disappointed, an upward revision of the prior headline figure from 0.3% to 0.8% spurred US Dollar strength.
Traders should exercise caution, as movements may be short-lived, with quick profit-taking likely ahead of the Christmas holiday.
As of this writing, WTI Crude trades at $69.25, while Brent Crude is priced at $72.41.
Oil News and Market Movers: Bulgaria Buys Russian Oil, Avoiding Indian Markets
- Crude Oil storage on stationary tankers (seven days or more) climbed to 70.20 million barrels as of December 20, marking a 7% increase from the previous week, according to Vortexa data reported by Bloomberg.
- EU sanctions on Russian oil vessels are being bypassed through Bulgaria, Romania, and Turkey, as detailed in a special report by Zerohedge on Monday.
- President-elect Donald Trump criticized Panama during a weekend rally, accusing the country of charging excessive fees for using its crucial waterway, Bloomberg reports.
- The Energy Information Administration’s (EIA) weekly US Crude stockpile change report is scheduled for Thursday at 16:00 GMT, delayed due to the Christmas holiday.
- Indian oil refiners are reportedly struggling to secure cheaper Russian crude, Reuters reports, citing sources familiar with the matter.
Oil Technical Analysis: Caution Ahead of Year-End
Crude Oil prices may experience a modest uptick, supported by broad market risk-on sentiment. However, traders should remain cautious, as smaller positions and quick profit-taking are typical as the year-end approaches. Any rally in Oil is likely to be short-lived under current conditions.
Resistance Levels:
- Immediate resistance lies at the 100-day SMA ($70.79) and the $71.46 level (February 5 low).
- If momentum strengthens, the next key target is $75.27 (January 12 high).
Support Levels:
- On the downside, $67.12 remains a strong support level, having held prices in May, June 2023, and Q4 2024.
- A break below this level could lead to a test of the 2024 year-to-date low at $64.75, followed by $64.38 (2023 low).
Traders are advised to stay vigilant for potential squeezes and to take profits early as liquidity thins ahead of the holidays.
