- Oil buoyed by OPEC+ supply cuts, likely drop in US Crude Stocks.
- Upside looks capped amid resurgent US dollar demand.
- Focus on API Crude Stocks data amid Xmas Eve light trading.
WTI (oil futures on NYMEX) is trading little changed around the midpoint of the 60 handle, as Xmas Eve thin markets leave the spot wavering in a familiar trading range.
The upside in the black gold remains capped by the looming US-China trade concerns and resurgence of the US dollar demand across the board. The greenback is making recovery attempts from Monday’s downbeat US Durable Goods Orders data-led drop. A stronger buck makes the USD-denominated oil expensive to the holders in foreign currencies.
Meanwhile, the barrel of WTI continues to find some support from the ongoing OPEC+ supply cuts after Russia’s Energy Minister Novak said Monday that the cooperation with OPEC to support the market would continue. Further, expectations of a second weekly decline in the US Crude Stocks also keep the downside cushioned.
Looking ahead, the American Petroleum Institute’s (API) weekly US Crude Stocks data will be closely eyed for some action in the commodity while thin trades could exaggerate the moves, as investors head into the Christmas holiday.
WTI Technical levels to consider
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