WTI crude steadies around $69.5 as thin holiday trading persists
WTI crude oil holds steady around $69.30 amid mixed global cues
West Texas Intermediate (WTI) crude oil futures held steady at $69.30 per barrel during Tuesday’s Asian trading session. The subdued price movement comes amid thin pre-holiday trading activity, with crude oil finding some support from robust economic indicators in the United States, the world’s largest oil consumer.
November data showed a surge in new orders for the U.S.-manufactured capital goods, particularly machinery, along with a rebound in new home sales.
WTI crude oil price dynamics (Nov 2024 - Dec 2024) Source: TradingView
Global factors influence WTI movement
India, the third-largest crude oil importer, reported a 2.6% year-on-year increase in imports to 19.07 million metric tons for November. This rise is attributed to higher economic and travel activity. However, concerns over potential oversupply in 2025 and the resumption of operations at the Druzhba pipeline in Europe have limited upward momentum for oil prices.
The stronger U.S. dollar has also added pressure, making dollar-denominated crude more expensive for foreign buyers. Meanwhile, Sinopec, Asia’s top oil refiner, forecasted China’s oil consumption to peak in 2027, adding a cautious note to the long-term demand outlook.
Middle East developments add complexity
In the Middle East, diplomatic efforts led by Egypt, Qatar, and the U.S. to mediate the conflict between Israel and Hamas have gained traction. While progress has been reported, unresolved differences remain, potentially affecting market sentiment in the region.
Despite these mixed signals, oil prices have shown resilience as markets await further clarity on supply and demand dynamics in 2025.
In our earlier analysis, we discussed WTI’s stabilization near $69.81, highlighting the influence of technical breakout patterns and softer U.S. inflation data. These factors remain pivotal as traders await clearer signals for crude oil's trajectory.
