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OIL: Energy Rises On Expected Cold Snap

OIL
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Oil prices were moderately higher on Monday in thin holiday-affected trading. There was a sharp rise in natural gas prices as temperatures are expected to drop in Europe & the US and crude followed, as it is also used as a heating fuel. Demand may increase if gas prices remain elevated. It also found support from technical indicators.

  • WTI rose 0.8% to $70.99/bbl after reaching a high of $71.56 during US trading, the highest since early November. The benchmark is currently up around 5% this month but gains are seen as corrective. Initial support is at $66.01 and resistance at $71.97.
  • Brent is up 0.4% to $74.10/bbl following a peak of $74.50. It is now 3.6% higher in December but almost unchanged on the year. The trend outlook remains bearish with the bear trigger at $67.85. Initial support is at $75.43, November 5 high.
  • Algorithmic traders became net long Brent yesterday after being short since mid-October, according to Bridgeton Research and reported by Bloomberg.
  • Oil prices have been range trading since October as concern over an expected 2025 surplus have been offset by geopolitics and OPEC’s delay to its output normalisation. There is currently a lot of uncertainty around the 2025 outlook due to the change in US administration and lack of details around planned China stimulus.
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Oil prices were moderately higher on Monday in thin holiday-affected trading. There was a sharp rise in natural gas prices as temperatures are expected to drop in Europe & the US and crude followed, as it is also used as a heating fuel. Demand may increase if gas prices remain elevated. It also found support from technical indicators.

  • WTI rose 0.8% to $70.99/bbl after reaching a high of $71.56 during US trading, the highest since early November. The benchmark is currently up around 5% this month but gains are seen as corrective. Initial support is at $66.01 and resistance at $71.97.
  • Brent is up 0.4% to $74.10/bbl following a peak of $74.50. It is now 3.6% higher in December but almost unchanged on the year. The trend outlook remains bearish with the bear trigger at $67.85. Initial support is at $75.43, November 5 high.
  • Algorithmic traders became net long Brent yesterday after being short since mid-October, according to Bridgeton Research and reported by Bloomberg.
  • Oil prices have been range trading since October as concern over an expected 2025 surplus have been offset by geopolitics and OPEC’s delay to its output normalisation. There is currently a lot of uncertainty around the 2025 outlook due to the change in US administration and lack of details around planned China stimulus.