Oil Price Fundamental Daily Forecast – Thin Post-Holiday Volume Could Trigger Exaggerated Price Reactions

Oil Price Fundamental Daily Forecast – Thin Post-Holiday Volume Could Trigger Exaggerated Price Reactions

U.S. West Texas Intermediate and Brent crude oil futures closed slightly lower on Wednesday as traders squared positions ahead of Thursday’s U.S. bank holiday. Volume was light and this trend could carry over into Friday’s trade which traditionally is another below-average volume session. This opens the door for the possibility of heightened volatility since most of the major players are not likely to return to the market until early next week.

On Wednesday, January WTI crude oil futures settled at $78.39, down $0.11 or -0.14%. February Brent crude oil futures finished at $81.05, down $0.28 or -0.35%).

The fundamentals are both bullish and bearish at this time, but at least over the short-run, traders are leaning toward the bullish side.