Crude oil prices are on the rise this Friday, surging by over 1% ahead of the final oil data of 2024. The US market is gearing up for a series of data releases, including the Energy Information Administration’s (EIA) stockpile data, which was rescheduled due to the Christmas holiday on Wednesday. This comes as other asset classes experience low volatility, making the oil market stand out.
The US Dollar Index, trading flat just above 108.00, is set to head into next week’s New Year’s Eve. It remains near its two – year high, with the potential for a new high before the year end if an external event occurs.
At the time of writing, Crude Oil (WTI) is trading at $70.40 and Brent Crude at $73.70.
Oil News and Market Movers
The EIA will release its weekly Gas storage change number at 15:30 GMT. The previous week’s storage was 125 billion cubic meters. At 17:00 GMT, the Crude Oil stockpile change numbers are expected to show a drawdown of 2 million barrels, compared to the previous drawdown of 0.934 million barrels. On Tuesday, the weekly US American Petroleum Institute (API) stockpile data showed a draw of 3.2 million barrels, less than the 4.7 million decline seen a week earlier. At 18:00 GMT, the Baker Hughes Oil Rig Count will close for Friday. No forecast is available, with the previous reading at 483 rigs operational.
Oil Technical Analysis
Crude oil price action is likely to be an outlier on Friday, given the overall holiday lull in other markets. With key data to be digested, traders need to be vigilant as the window for trading is limited. Brief volatile moves are expected, but any rally may lack the fundamental support to extend into 2023. Looking up, the 100 – day Simple moving average (SMA) at $70.59 and $71.46 (February 5 low) act as strong resistance levels. If more tailwinds support the oil price, the next pivotal level will be $75.27 (January 12 high). However, expect quick profit – taking as the year end approaches. On the downside, $67.12, which held the price in May and June 2023 and during the last quarter of 2024, is the first solid support nearby. In case that breaks, the 2024 year – to – date low emerges at $64.75, followed by $64.38, the low from 2023.
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