Amidst the hustle and bustle of the holiday season, the global oil market continues to show resilience and stability. Here are the key factors influencing oil prices as we head towards Christmas Day:
- Oil prices have seen an uptick in thin trade as U.S. economic data and increasing oil demand from India, the world’s third-largest oil importer, provide support.
- Brent crude futures rose by 0.45% to $72.95 a barrel, while U.S. West Texas Intermediate crude futures climbed 0.42% to $69.53 a barrel.
- Key U.S.-manufactured capital goods witnessed a surge in new orders in November, signaling robust demand for machinery and indicating a strong economy as we approach the end of the year.
- The U.S., as the world’s largest oil consumer, plays a crucial role in shaping global oil demand and prices.
- Traders are eagerly awaiting the crude oil and fuel stockpiles data from the American Petroleum Institute to gauge U.S. demand trends.
- Despite finishing below the $69.50 level in recent sessions, market analyst Tony Sycamore anticipates oil prices to remain range-bound until after the holidays, awaiting cues from Wall Street.
On the other side of the globe, India’s crude oil imports grew by 2.6% year-on-year in November, driven by increased economic and travel activities. This spike in demand underscores the country’s significant role in the global oil market.
Meanwhile, in the Middle East, efforts to broker peace between Israel and Hamas have gained momentum, although critical differences between the parties remain unresolved.
As we navigate through the holiday season, these developments in the oil market highlight the ongoing interplay between economic data, geopolitical factors, and demand-supply dynamics. Stay tuned for further updates as we head into the new year.
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