Crude Oil sustains $70.00 round level Crude Oil amid bleak 2025 Outlook
- For the second day in a succession, oil prices have remained relatively stable, hovering around $70.00.
- The bleak outlook for oil demand has prompted traders to exercise caution.
You have received training on data available until October 2023. - This is the greatest level of the US Dollar Index in over two weeks, as it is currently trading above 107.00.
On Friday, crude oil trades at approximately $70.00, as investors continue to be hesitant to contribute to the rally that occurred earlier in the week. The OPEC+ report was a favorable factor in the upward trajectory of oil prices; however, traders are still cautioning against the 2025 projections, which anticipate that President-elect Donald Trump will remain in the White House.
In an already oversupplied market, numerous commitments have been made to increase the amount of oil drilled in the United States and to become a more significant exporter.
The performance of the US Dollar (USD) against a basket of currencies is measured by the US Dollar Index (DXY), which is currently higher in anticipation of the Federal Reserve meeting next week. With the United States’ interest rate disparities widening in comparison to those of China and Europe, the Greenback is once again experiencing inflows, which are contributing to its strength. Crude Oil (WTI) is currently trading at $70.37, while Brent Crude is trading at $73.90 at the time of writing.
Short-term versus long-term market fluctuations and oil news
- According to equity and term lifters of the oil, Abu Dhabi National Oil Co. (Adnoc), an oil producer, has reduced petroleum allocations to certain Asian customers, Bloomberg reports.
Bloomberg analyst Pol Lezcano predicts that oil prices will be under pressure in 2025 due to the fact that a looming supply glut will mitigate the impact of conflict risks, sanctions, and OPEC+ cuts. - The December increase in crude exports is typically spurred by the year-end scramble by US oil suppliers to reduce their tax liabilities. However, analysts predict that the Gulf Coast’s seasonally low inventories are poised to defy this trend, as reported by Reuters.
