INSUBCONTINENT EXCLUSIVE:
Oil prices eased slightly on January 6, 2025, despite reaching their highest levels since October
Brent crude futures fell to $76.30 per barrel, while West Texas Intermediate (WTI) crude dropped to $73.56 per barrel.The market experienced
a six-day rally before this minor setback
Weak economic data from the United States and Germany contributed to the downward pressure on oil prices.A softer United States dollar
provided some support to the market
Colder weather forecasts for Europe and the United States also bolstered expectations of increased energy demand.Technical analysis reveals
a complex picture for crude oil futures
The Point of Control (POC) at $74.13 serves as a pivotal level for WTI crude
Bears target $73.69, $73.47, and $73.05 as potential support levels.Bulls need to reclaim and hold above $74.33 to confirm strength
Brent crude oil prices broke above $76.20 on January 2-3, reaching a 2.5-month high
However, signs of waning bullish momentum have emerged.Oil Prices Dip Amid Mixed Economic Signals and Geopolitical Tensions
(Photo Internet reproduction)A bearish divergence between the RSI indicator and recent price action suggests vulnerability to a correction
these efforts could sustain global demand for crude and push prices higher
The open interest in WTI futures on the New York Mercantile Exchange reached 1.933 million contracts, a level not seen since June 2023.The
weekly chart shows WTI crude breaking out of a multi-week range, threatening to end a six-month downtrend
Key resistance levels lie at $73.87/91, $75.55/60, and $77.15-78.Support levels include $71.90-72.45, $71.33, and the psychologically
Geopolitical tensions, particularly between Iran and Israel, add an underlying layer of support to oil prices.Concerns about potential
declines in Iranian oil production due to anticipated sanctions loom over the market
Forecasts suggest a reduction of 300,000 barrels per day in Iranian output by the second quarter of 2025.United States crude inventories
have been declining, with current levels at 415.6 million barrels
This figure is lower than both the previous year and 2019 levels
The tightening supply contributes to the current price support in the market.On the daily timeframe, WTI crude threatens to break out of a
descending pitchfork pattern tracked since July
The October high-day close at $73.87/91 serves as initial resistance
A breach and close above this level would validate the breakout.Analysts from Eurasia Group predict low demand growth for oil markets in
They suggest this growth could be outpaced by new supply, especially from the United States and potentially from OPEC.However, the market
remains sensitive to geopolitical developments and potential supply disruptions
The HalfTrend indicator on the daily chart has flashed a long signal, suggesting an upward trend.The Relative Strength Index (RSI) on the
weekly chart sits at 55, indicating room for further price increases before reaching overbought territory.
