With the Christmas holiday approaching, the crude oil market is experiencing significant fluctuations and volatility. During Friday’s Asian trading session, U.S. crude oil and Brent crude oil both saw increases, with WTI crude oil testing the $75 level multiple times, but facing resistance. Brent crude oil tried to break above the $80 level, but reversed course and showed signs of decline.
Market participants are adjusting their positions ahead of the holidays, with the 50-day moving average declining and heading towards the $75 level. The market is also experiencing limited liquidity, which is expected to continue for at least a week. Despite some possible short covering in the days leading up to Christmas, it is advised not to read too much into market movements during this period.
The current market sentiment points to an oversupply of crude oil, which may continue to exert downward pressure. However, if prices rise and break above the 50-day moving average, the market will likely set its sights on the 200-day moving average. With the Christmas holiday approaching and the market closed on Monday, traders are cautious about the turbulent trend and hesitant market movements.