Forex market analysis: 10 January 2025
WTI crude rises on heating fuel demand
WTI crude oil advanced to USD 74.13 per barrel, marking its third consecutive weekly gain. Prices briefly reached an intraday peak of USD 74.35, driven by freezing conditions across the US and Europe, which have significantly boosted the need for heating fuels.
WTI crude oil advanced to USD 74.13 per barrel, marking its third consecutive weekly gain. Prices briefly reached an intraday peak of USD 74.35, driven by freezing conditions across the US and Europe, which have significantly boosted the need for heating fuels.
The US Weather Bureau has forecast below-average temperatures for central and eastern regions, while Europe braces for a colder-than-usual start to the year.
These frigid conditions have spurred demand for heating oil, kerosene, and LPG, contributing to the upward pressure on crude prices.
Tight supply intensifies market pressures
The gap between front-month Brent contracts and those six months out has widened to its largest since August, underscoring tightening supply against surging demand.
The gap between front-month Brent contracts and those six months out has widened to its largest since August, underscoring tightening supply against surging demand.
Concerns over availability are heightened by expectations that President Joe Biden will announce additional sanctions targeting Russia’s oil sector.
This move could exacerbate supply disruptions just before President-elect Donald Trump’s inauguration on 20 January.
Technical analysis
Crude oil rebounded from an early session low of USD 72.83 to close at USD 74.12.
Crude oil rebounded from an early session low of USD 72.83 to close at USD 74.12.
Crude oil climbs to 74.12, supported by bullish sentiment, as seen on the VT Markets app.
Short-term indicators on the 15-minute chart suggest an ongoing positive trend, with moving averages (MA5, MA10, MA30) pointing upwards.
The MACD (12,26,9) remains positive but shows a narrowing histogram, signalling a potential slowdown in bullish momentum as prices approach resistance at USD 74.35.
Oil’s resilience amid dollar strength
Despite the US dollar sustaining a six-week rally, crude oil has shown remarkable resilience against the typically adverse effects of a strong greenback.
Despite the US dollar sustaining a six-week rally, crude oil has shown remarkable resilience against the typically adverse effects of a strong greenback.
Traders remain cautious as they await further developments regarding US sanctions and policy decisions once President-elect Donald Trump assumes office.
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