In the early hours of Friday continues to see buyers coming into the markets, as the oil market looks like it is ready to break out and above a massive amount of resistance. At this point, it is obvious that we should continue to see inflows.
Oil futures were off slightly early Friday, but on track for solid gains in a holiday-shortened week, buoyed by optimism over plans by China, the world's largest crude importer, to boost its economy.
Crude oil holds gains above $72 support, eyeing $77 as China stimulus and U.S. rate cuts boost demand. Seasonal factors could drive prices higher.
Geopolitical tensions and cold weather forecasts fuel market volatility, driving demand for heating fuels and price fluctuations.
Oil prices extended their gains on Friday after closing at their highest in more than two months in the previous session on hopes governments across the world may increase policy support to revive economic growth that would lift fuel demand.
Oil rose in the early Asian trade, extending gains for another session.
Crude oil surged to an 11-week high of 73.96, confirming bullish momentum, while targeting resistance zones between 74.29 and 76.74 for further gains.
U.S. crude oil inventories fell by 1.2 million barrels last week, which was less than expected, while stocks of gasoline and distillate fuels saw large builds.
U.S. crude inventories fell by 1.2M barrels, but rising gasoline and distillate stocks could pressure oil prices lower as refineries operate at high capacity.
The crude oil market was bullish again on Thursday, as the markets are starting to price in the idea of increasing demand coming from the US, and some demand coming due to central bank easing around the world.
Oil futures began 2025 on a positive note, boosted by hopes that China, the world's largest crude importer, will follow through on pledges to further stimulate growth in the new year.
Crude oil futures surge above 200-Day Moving Average at $72.37, signaling bullish potential as China growth optimism boosts demand outlook. Can prices sustain the rally toward $77.36?