Expectations that the U.S. stocks of crude inventory is set for a decline lifted oil prices. However, trading activity was still weak as markets began to wind down before the Christmas weekend.
U.S. WTI crude oil futures rose 28 cents from their last close and traded at $53.58 per barrel. Meanwhile, international Brent crude oil futures were trading at $55.57 per barrel, rising by 22 cents.
Traders cited the high market expectations of a reduction in U.S. crude stocks as the cause for the higher prices. Official crude inventory data will be posted later today, which is expected to show a drop by 2.563 million barrels.
Due to the lack of strong fundamentals, traders said that factors such as technical support and resistance levels will determine the prices of oil.
Analysts predict U.S. oil prices to scale a level of $54.37 per barrel, as it has surpassed $53.36 per barrel. Meanwhile, benchmark Brent oil is seen to beat a resistance at $55.79 per barrel.
The material has been provided by InstaForex Company – www.instaforex.com