|News||Oil extending the week's gains|
|Analysis||Crude oil rallied since the beginning of the session as encouraging data from the world’s largest economy helped in pushing financial markets to the upside, amid low volumes in markets as it is the end of the year and many investors are worried and trying to close their positions amid high uncertainty.|
Crude oil rose significantly today as it opened the session at $99.48 and recorded a low of $99.22, and it reached so far a high of $100.20 and it is currently trading positively around $99.96.
This week is considered one of the best weeks for crude, as it soared during the week to erase some of last week losses due to many positive factors that pushed crude to the upside taking it above the $100 levels again.
Fears over crude supply is one of the major factors that pushed up crude, as strong demand is met by further supply worries after the EU nations alongside the US and Asia-Pacific allies on December 20 discussed the possibility of more sanctions on Iran which puts the second biggest OPEC nation at risk of supply decline especially as investments in oil decline and a bad on imports will surely have its impact.
Yesterday, encouraging data from the world’s largest economy added positive signs that the economy is improving in the fourth quarter, which would increase the demand on crude, as the labor sector is doing good along with other sectors.
On the other hand, the EIA showed this week that the U.S. commercial crude oil inventories decreased by 10.6 million barrels from the previous week, where distillate fuel inventories decreased by 2.4 million barrels last week and are in the lower limit of the average range for this time of year.
Also, the weakness of the dollar this week is one of the factors that pushed crude and helped it to surge above the $100 levels, as it opened today’s session at 79.94 and recorded a high of 79.95, but it declined to a low of 79.72 and it is currently trading around 79.79.
We must note here that the volumes of trading in financial markets are low, which make it easier for markets to rise quickly on any encouraging data, but volatility will remain high, as it is the end of the year and many investors are closing their positions.