Oil Down in Thin Trade Ahead of Holiday with Dollar, Trump in Focus
Oil was steady in thin trade ahead of the holiday, with the focus on a strong dollar and President-elect Donald Trump’s international political turmoil.
Brent traded around $73 a barrel after falling 0.4% on Monday, with West Texas Intermediate above $69. The dollar held near a two-year high, dampening the appeal of commodities, while Trump threatened to seize the Panama Canal and impose tougher sanctions and tariffs that could affect oil flows.
“The festive season does not seem to bring much relief from Donald Trump, with the market once again wondering how much of what Trump says will actually be followed through,” said Yeap Jun Rong, market strategist for IG Asia Pte. “A quiet calendar for the last two weeks of December is likely to keep oil prices steady.” Crude has remained in a tight range since mid-October, with geopolitical uncertainty weighing on sluggish demand in top importer China and expectations of ample supply from the U.S. OPEC and its allies are also set to begin ending production cuts in 2025.
Trading volumes were down on Monday and likely to remain subdued as markets closed for the year-end holiday. Nearly 700,000 Brent contracts were traded across the curve on Monday, about two-thirds of the average this year.
Source: Bloomberg
