Oil Prices Dec 23-27: Low volume and lack of news this week

[dan_s]

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures settled higher last week in an impressive move that took the markets to multi-month highs. WTI would’ve close near its highest level since May 22 if not for a steep break on Friday. Brent also reached its highest level since May 22 before backing off into Friday’s close.

Last week, February WTI crude oil settled at $60.44, up $0.46 or +0.77% and March Brent finished at $65.20, up $0.95 or +1.46%.

Several factors helped to underpin crude oil prices this week including lower U.S. supply, the OPEC+ production cuts and demand growth expectations. Prices likely retreated on Friday on profit-taking ahead of the holiday-shortened week. Extremely light volume may have also contributed to the weakness at the end of the week as buyers were scare.

Read more: https://www.fxempire.com/forecasts/arti ... day-621579


Last year, WTI dipped to $42.50/bbl on Christmas Eve. This year, Santa may leave $60+ WTI under the tree.

Low trading volume, lack of news and some tax motivated trading can cause significant moves in stock prices. Don't over-react to stock price moves on no news during the holidays. A "normal market" (if there is such a thing) should return on January 2nd. However, rumors of when the U.S. / China Phase One Trade Agreement will be signed or not signed may keep oil traders guessing.