Oil prices are on the rise this Friday, with an increase of nearly 1.00%. This surge comes ahead of the last oil data points for 2024, as all data has been rescheduled to Friday due to the Christmas holiday earlier in the week. The US Dollar Index is trading flat, hovering just above 108.00 as we head into the New Year’s Eve next week.
The increase in crude oil prices on Friday is due to traders preparing for a series of data releases in the US trading session. This includes stockpile data from the Energy Information Administration (EIA), which was moved from its usual day due to the Christmas Day holiday. While other asset classes are experiencing low volatility, it appears that oil prices are set to see some spikes before the week comes to a close.
The US Dollar Index (DXY) has been relatively stable, residing just below a two-year high at around 108.00. Despite a lack of volatility, there is still a possibility for the Greenback to hit a fresh two-year high before the end of the year if any significant outside events occur. Currently, Crude Oil (WTI) is trading at $70.00, while Brent Crude is at $73.33.
Later in the day, the Energy Information Administration (EIA) is expected to release its Gas Storage Change data, followed by the Crude Oil stockpile change numbers. Additionally, the Baker Hughes Oil Rig Count data will be released at 18:00 GMT. These data points will provide further insight into the oil market and may impact prices in the short term.
As crude oil prices experience an increase on Friday, traders need to be on alert for potential volatility and limited trading opportunities. The price action could be an outlier compared to other asset classes that are currently in a Christmas market lull. There are key resistance levels to watch for, with the potential for a rally to reach $75.27 in the short term.
WTI Oil, also known as West Texas Intermediate, is a type of high-quality crude oil that is easily refined. It is considered a benchmark for the oil market and is often quoted in the media. Supply and demand, global growth, political instability, OPEC decisions, and the value of the US Dollar are key drivers of WTI oil prices. Additionally, weekly inventory reports from the API and EIA can impact oil prices based on fluctuations in supply and demand. OPEC decisions regarding production quotas also play a significant role in determining oil prices.
