Crude is volatile amid low volumes
Crude oil is trading within a narrow range and is fluctuating at the end of the year as trading volumes are low in markets due to investors' closings; however, no major data are due during the week, which will keep the volatility high. Crude oil opened today's session at $99.92 and reached a high of $100.09 and a low of $99.35, where it is currently trading around $99.44. Volatility will be the status of crude this week and it is not expected that crude will join a specific direction, but with low volume it might take unexpected move on tiny data unless any major factor come up and decide the direction of crude. The United States is supposed to release the confidence data today, where it is expected to show an improvement in consumers' confidence in December which may push crude to the upside. We saw how US data had its major effect on crude oil as rising demand from the world's biggest oil consumer would be positive factor for crude, especially that the world supply of crude is threatened, as the Iranian oil production is still a thorny issue. In general, crude is currently trading in high levels a little bit below the $100 levels, as the Iranian oil issue is the main factor behind this rise despite the slowing economies around the globe and the European debt crisis which will curb the oil demand. On the other hand, signs of strong recovery pace in US are pushing crude as well, as many positive signs from the world's biggest economy appeared recently and indicated that the economy is doing well in the fourth quarter, which will increase the oil demand indeed, and we saw how the US inventories fell sharply last week. All in all, crude will remain volatile today and during the week and to trade softly within a narrow range due to year ending which urge investors to close their positions in order to avoid any unexpected losses amid high uncertainty which dominates global markets.
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