Spot crude oil prices were relatively unchanged during Monday’s quiet trading session. Concerns of European debt sill weighs on the market and poor fundamentals are limiting a potential price appreciation for the commodity.
Price action was limited in European trading and severely subdued during the New York trading hours. U.S. markets were closed on Monday in observance of Presidents Day.
Spot crude oil prices were trading at $74.20, relatively unchanged from their opening price of $74.10. Spot crude oil has been range-trading between the prices of $74.32 and $73.93. This price action has been observed since Friday’s 1.5% price drop caused by the increase in bank reserves required by China. Friday had prices dropping as low as $72.63. This point coincides with spot crude oil’s significant upward slanting trend line.
A lack of fundamental news in the market may have traders looking to macroeconomic indicators for direction in spot crude oil trading. The strength of the US dollar may help to push spot crude oil prices lower as further details are yet to be released regarding the economic aid package being constructed for Greece.
Spot crude oil trading has experienced significant price volatility since the outbreak of the Greek debt crisis and the recent monetary policy tightening that China has enacted.
As a result, oil prices could face further pressure this week as the commodity’s fundamentals come under pressure. Issues regarding the amount of supply and demand that are currently in the market may not be in equilibrium. Traders may want to look for a break of the $72.15 resistance level this week should further negative fundamental issues surface.
