The oil prices they rose more than one 1% this Tuesday, reversing the losses of the previous session, driven by encouraging short-term market prospects, linked to the expectation of a slight contraction in supplies as operations are reduced before the Christmas holidays.
The Brent crude oil futures they went up 95 cents, or a 1.3%, to 73.58 dollars per barrel, while the West Texas Intermediate (WTI) won 86 cents, or a 1.2%, to 70.10 dollars per barrel.
FGE analysts said they anticipated benchmark prices to fluctuate around current levels in the near term “as the Activity in paper markets decreases during the holiday season and market participants are staying on the sidelines until they have a clearer view of the 2024 and 2025 global oil balances.”
Changes in supply and demand in December supported their current least pessimistic view so far, the analysts said in a note.
“Given how short the paper market is on positioning, any disruption to supply could trigger bullish spikes in the structure,” they added.
The plan of Chinathe world’s largest oil importer, to issue special Treasury bonds worth 3 trillion yuan ($411 billion) next year, as Beijing increases fiscal stimulus to revive a faltering economywas also favorable for prices.
This is likely to provide short-term support for WTI crude at $67 a barrel, he said. Kelvin Wong to Reuterschief market analyst at OANDA.
Markets will also be attentive to the economy of the United States, the world’s largest oil consumer, which published mixed data the day before.
While consumer confidence weakened in December, new orders for U.S. manufactured capital goods rose in November amid strong demand for machinery, while new home sales also picked up, suggesting that the The world’s largest economy is on solid footing at the end of the year.
Source: Ambito
