Jump to content

Oil Climbs to Fresh Four-Week High as Omicron Concerns Ease


MongiIG

Recommended Posts

Oil Climbs to Fresh Four-Week High as Omicron Concerns Ease

Bloomberg_new.pngCommoditiesDec 24, 2021 
image.png

(Bloomberg) -- Oil settled above $73 a barrel for the first time in four weeks as signs that the omicron Covid-19 variant may be less severe than previous strains eased concerns about a demand hit.

West Texas Intermediate futures in New York closed 1.4% higher on Thursday amid thinning liquidity heading into the holiday period. A U.K. health agency said Thursday omicron was less likely to lead to hospitalizations than the Delta strain, while U.S. regulators cleared Merck & Co.’s Covid-19 pill, dissipating some of the worst fears about the variant’s effect on oil demand.

“Crude prices stabilized after a rash of mostly positive COVID vaccine/treatment headlines in the fight against omicron,” said Edward Moya, senior market analyst at Oanda Corp. “It seems all the major catalysts that await oil in the New Year lean towards higher prices,” he said. 

Trading volumes are starting to thin before Christmas, while open interest -- the total number of oil contracts held by traders -- for crude, gasoline and diesel futures combined is at its lowest in almost six years. Both could still leave the market prone to sharp moves.

Oil is heading for an annual gain following a strong rebound from the pandemic, though uncertainties stemming from the evolving nature of the virus may restrain gains. U.S. crude futures appeared to face some resistance as they approached the 100-day moving average of $74.04. Breaking above that level could trigger further buying from speculators, analysts said.

Exxon Mobil (NYSE:XOM) has extinguished a fire at its 561,000 barrel a day Baytown oil-processing facility in Texas, one of the largest in the U.S. 

Exxon spokeswoman Julie King said the company is adjusting operating rates to focus on stabilizing the affected unit. Gasoline’s premium over crude surged as much as 6.1% after the news.

“Today we had some bullish factors to drive up market sentiment,” said Andrew Lebow, senior partner at Commodity Research Group. “The Baytown refinery fire could potentially tighten gasoline supplies in the U.S. and it’s happening while crude stocks are being drawing down domestically.” 

U.S. crude inventories dropped by 4.72 million barrels last week, and have shrunk over 10 million barrels over the past four weeks, according to government data. An energy crunch in Europe and disruptions to supply in Libya and Nigeria have also led to some tightening in oil supplies.

©2021 Bloomberg L.P.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Elliott Wave Analysis TradingLounge Daily Chart, DogeCoin/ U.S. dollar(DOGEUSD) DOGEUSD Elliott Wave Technical Analysis  Function: Counter trend     Mode: Corrective Structure: Zigzag Position: Wave ((C)) Direction Next higher Degrees: wave I of Impulse Wave Cancel invalid Level:  Details: Wave ((4)) may is complete and the Price entry to uptrend again DogeCoin/ U.S. dollar(DOGEUSD)Trading Strategy: Dogecoin overall is still in the period of correction. In the position of wave (II) with a Zigzag pattern, the view is therefore for a short-term pullback before rising again in wave (III), waiting for the correction to complete to rejoin the uptrend. DogeCoin/ U.S. dollar(DOGEUSD)Technical Indicators: The price is below the MA200 indicating a downtrend, The Wave Oscillator is a Bearish Momentum. Elliott Wave Analysis TradingLounge H4 Chart, DogeCoin/ U.S. dollar(DOGEUSD) DOGEUSD Elliott Wave Technical Analysis  Function: Counter Trend Mode: Corrective  Structure: Zigzag Position: Wave A Direction Next higher Degrees: Wave V of Impulse Wave Cancel invalid Level:  Details: wave ((2)) Is Equal to 61.8% of Wave ((1)) at 0.1373 DogeCoin/ U.S. dollar(DOGEUSD)Trading Strategy: Dogecoin overall is still in the period of correction. In the position of wave (II) with a Zigzag pattern, the view is therefore for a short-term pullback before rising again in wave (III), waiting for the correction to complete to rejoin the uptrend. DogeCoin/ U.S. dollar(DOGEUSD)Technical Indicators: The price is below the MA200 indicating a downtrend, The Wave Oscillator is a Bearish Momentum. Technical Analyst : Kittiampon Somboonsod Source : Tradinglounge.com get trial here!  
    • ASX: ASX LIMITED - ASX Elliott Elliott Wave Technical Analysis TradingLounge (1D Chart)   Greetings, Our Elliott Wave analysis today updates the Australian Stock Exchange (ASX) with ASX LIMITED - ASX. We observe that ASX LIMITED is approaching the end of wave 2-grey, but needs more evidence on price action for confirmation, also allowing wave 3-grey to be opened to push higher thereafter.   ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis   ASX: ASX LIMITED - ASX  1D Chart (Semilog Scale) Analysis Function: Major (Minor degree, grey) Mode: Motive Structure: Impulse Position: Wave (c)-orange of Wave ((y))-navy of Wave 2-grey Details: The short-term outlook indicates that the price has continued to decline longer than expected, with wave 2-grey retracing quite deeply. Essentially, it may continue this action. However, a drop below 53.98 will call for a reassessment of the situation. Invalidation point: 53.98   ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis TradingLounge (4- Hour Chart) ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis ASX: ASX LIMITED - ASX  4-Hour Chart Analysis Function: Major (Minor degree, grey) Mode: Corrective Structure: Double Zigzag Position: Wave (c)-orange of Wave ((y))-navy of Wave 2-grey Details: The short-term outlook shows that wave (c)-orange is about to complete, and at the same time it will also complete wave 2-grey, allowing wave 3-grey to open to push higher. The important thing is that the price needs to rise above 59.39, which is also the first step to renew the long-term bullish view with wave 3-grey. Invalidation point: 64.32   Conclusion:   Our analysis, forecast of contextual trends, and short-term outlook for ASX: ASX LIMITED - ASX aim to provide readers with insights into the current market trends and how to capitalize on them effectively. We offer specific price points that act as validation or invalidation signals for our wave count, enhancing the confidence in our perspective. By combining these factors, we strive to offer readers the most objective and professional perspective on market trends.   Technical Analyst: Hua (Shane) Cuong, CEWA-M (Master’s Designation). Source : Tradinglounge.com get trial here!  
    • I overheard a discussion between two friends and one was telling the other that Bitcoin is a scam and that a lot of people preached about the halving and how people could cashout from it. The other friend was trying to convince him to continue holding his asset but he refused and replied that nothing would stop him from selling the coins he's holding.  When I heard that man mentioned cashing out from the halving, I understood that he might know about Bitcoin but he's not properly enlightened concerning it. A lot of expectations were cut short after the halving event cause most people expected Bitcoin to set a new height of $80k but then it didn't even get close to the previous all time high and have reduced below $60k currently.  I think people shouldn't get discourage by that, though I didn't experience other halvings cause I had zero knowledge about Bitcoin then but i think something similar have occurred before in one of the previous halving where Bitcoin price didn't go up as expected but later traced back and went up after some period, a lot of people might begin to panic and sell their coins but I still see this an opportunity to buy more Bitcoin and for those who are not opportuned to do so, holding is the best option, please correct me if you think am wrong  
×
×
  • Create New...
us