Crude Oil prices are starting to see volatility die down on Tuesday as traders look ahead to Christmas Eve rather than the release of the American Petroleum Institute (API). Even headlines of further stimulus in China are not driving Oil prices higher: Chinese policymakers want to boost the economy with a 3 trillion Yuan bond injection, a move that should ramp up spending and result in a boost in demand for Oil from one of the world’s top consumers. The US Dollar Index (DXY) – which measures the performance of the US Dollar (USD) against a basket of currencies – is residing just below the two-year high. The Greenback sees volatility die down in these final trading hours before Christmas. With its current position, a fresh two-year high could still be hit before the end of the year. At the time of writing, Crude Oil (WTI) trades at $69.63 and Brent Crude at $72.84.
Oil news and market movers: Not making big waves
Oil Technical Analysis: Mild actionCrude Oil prices aren’t jumping significantly despite headlines that China is set to boost its local demand with a massive 3 trillion Yuan (CNH) injection. This should be beneficial for the local Oil demand as China is one of the world’s biggest consumers. The fact that the stimulus plan still needs to be outlined further and that several market participants are not trading on Tuesday makes a big move in Oil prices very unlikely. Looking up, the 100-day Simple Moving Average (SMA) at $70.76 and $71.46 (February 5 low) act as firm resistance levels nearby. Should more tailwinds emerge in support for Oil, the next pivotal level will be $75.27 (January 12 high). However, watch out for quick profit-taking as the year-end quickly approaches. On the downside, $67.12 – a level that held the price in May and June 2023 and during the last quarter of 2024 – is still 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. US WTI Crude Oil: Daily ChartMore By This Author:Crude Oil Flattens Amid Rather Positive Market Sentiment Ahead Of Christmas US Dollar Hits Fresh Two-Year High Ahead Of PCE Inflation Crude Oil Recovers As US Inventories Set To Erode Further In 2025