Cold weather in the U.S. and Europe is pushing up oil prices. A polar vortex brought freezing temperatures and snowstorms. These conditions increase the need for heating fuels, raising crude oil demand. However, disrupted travel may offset some demand growth.
U.S. oil inventories saw strong builds recently, signaling a sluggish demand environment. Despite this, the demand for heating fuels during cold months remains a key driver. Markets are closely watching weather patterns for further developments.
China's economic recovery remains a major focus for oil traders. December’s inflation data showed limited improvement, prompting expectations of more fiscal spending. Beijing may increase its efforts to boost the economy in 2025.
The Lunar New Year holiday in February is another factor likely to support higher travel demand. Increased mobility during the holiday season could further raise oil consumption. Stimulus measures and holiday travel are set to significantly influence oil market trends.
Oil price growth faces resistance from a strong dollar. This week, the dollar surged near a two-year peak, supported by hawkish signals from the Federal Reserve. Slower interest rate cuts in 2025 could sustain dollar strength, pressuring oil prices.
A strong dollar makes oil more expensive for international buyers, reducing global demand. Traders are also awaiting U.S. nonfarm payroll data for December, which could influence future Federal Reserve policies.
Brent oil futures rose 0.4% to $77.22 a barrel, while WTI crude futures climbed 0.4% to $75.53. Despite these gains, oil markets are poised for a subdued weekly performance due to dollar strength.
With weather conditions, China's economic actions, and Federal Reserve policies in focus, oil markets are likely to remain volatile.
Don't miss the latest insights on Forex trading and market updates! Visit our website: https://fixiomarkets.com/en/prex-blogs.
Cold weather in the U.S. and Europe drives oil prices higher, while China's stimulus plans and a strong dollar shape market trends.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)