Oil Prices Rise as Concerns Over Supplies Increase

Market News Summary

European stock indices varied at the end of the week’s trading session on Friday, December 15, following a recovery on Thursday. Investors reacted positively to the Federal Reserve’s signal that interest rate cuts will continue into 2024. The STOXX600, the European index, ended the week in the green, recording a 0.09% increase, closing at 477.02 points. This marked its fifth consecutive week of gains, the longest winning streak since last April.

Dollar Index (USDX)

Former Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair said that the market’s optimism regarding the possibility of interest rate cuts next year is seriously overstated. Bair, who led the FDIC during the 2008 financial crisis, pointed out that the focus should still be on inflation, emphasizing that “there is a long way to go in this battle.

According to the CME FedWatch tool, which measures expectations for the interest rate, 70% of current estimates suggest a possible interest rate cut in March.

Pivot Point: 101.95

Resistance level	Support level
102.45	101.70
102.75	101.15
103.30	100.90

Spot Gold (XAUUSD)

Gold prices fell at the close of Friday’s trading but recorded weekly gains amid expectations of a potential interest rate cut by the U.S. Federal Reserve next year.

At the close, gold futures declined by approximately 0.4% to $2035.7 per ounce, but they posted weekly gains.

Pivot Point: 2026

Resistance level	Support level
2037	2008
2055	1997
2066	1978

Dow Jones Index (DJ30ft – US30)

At the beginning of the week, futures contracts for U.S. stocks recorded relative stability, following seven consecutive weeks of gains for the indices. The Dow Jones Industrial Average surpassed the 37,000-point mark for the first time ever, coinciding with the U.S. Federal Reserve’s expectations of implementing three interest rate cuts next year.

Futures contracts for the Dow Jones Industrial Average added 29 points, a 0.1% increase. Similarly, futures contracts linked to the S&P 500 and Nasdaq 100 indices rose by approximately 0.1% and 0.3%, respectively.

Pivot Point: 37655

Resistance level	Support level
37790	37535
37915	37395
38050	37275

US Crude Oil (USOUSD)

Oil prices rose by approximately 1% in early Asian trading on Monday, supported by a decrease in exports from Russia and increased concerns about supply disruptions due to Houthi attacks on ships in the Red Sea.

Brent crude futures increased by 69 cents, or 0.9%, to $77.24 per barrel, while West Texas Intermediate (WTI) crude rose by 65 cents, or 0.9%, to $72.08 per barrel.

Pivot Point: 71.75

Resistance level	Support level
72.85	70.95
73.65	69.85
74.75	69.05

Risk Warning

This article provides real-time market analysis from contributing analysts. Please note that any views expressed in this article do not constitute operational advice. It is important to assess your risk tolerance and make independent trading decisions. STARTRADER holds no responsibility for any trading consequences that may arise from relying on the views expressed in this article.