Oil prices move higher after the latest US inflation reading cools fears about the pace of interest-rate cuts next year.
The modest rise in Brent and WTI comes on the heels of PCE data, which shows that inflation is less stubborn than many economists had predicted. Traders respond positively, even as the Federal Reserve’s hawkish pivot earlier this month continues to influence short-term market sentiment.
Picture: Crude oil near 69.58, finding short-term support after a mild bounce, as seen on the VT Markets app.
CL-OIL-ECN rose by 0.52% to close at 69.578, up from its 69.219 open, reaching a high of 69.923 and dipping to a low of 69.374.
Short-term moving averages (MA5, MA10, MA30) on the 15-minute chart turned slightly upward, reflecting mild buying pressure after the price recovered from a swing low near 68.453. The MACD (12,26,9) has drifted closer to its centre line, suggesting that strong momentum may be fading and leaving the market in search of new drivers.
Brent crude at USD 73.33 and WTI at USD 69.91 maintain an upward trend, though trading volumes remain contained. Some traders look for signals of tighter supply or a possible pick-up in global demand.
Others monitor China’s energy consumption data, which may reveal whether industrial output revives or cools in the months ahead. Many participants adopt a defensive approach, given forecasts of a possible supply surplus next year.
A surge in caution also stems from President-elect Donald Trump’s return to the White House, which brings questions about new policies that could alter global trade agreements and energy projects.
Market participants who hedge price risk may choose to scale positions incrementally, anticipating shifts in production and consumption patterns.
Traders who seek short-term opportunities might watch for hints of stronger demand, balanced against the longer-term possibility of expanded supply in 2024.
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