The price of oil has barely changed after rising by about 3% last week. Market participants continue to monitor developments in the Middle East, as well as overestimate the prospects for oil demand amid increased expectations of the Fed's monetary policy easing.
A slight pressure on prices was exerted by the positive dynamics of the US currency. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.08% to 101.77.
Meanwhile, trade is thin as some markets are still closed for the Boxing Day public holiday. The week between the Christmas and New Year holidays is likely to see lackluster liquidity, with combined aggregate open interest across the main oil contracts tracking lower since about the middle of this month.
Experts said that concerns about oil supplies decreased slightly after the Danish company Maersk said it was preparing to resume shipping operations in the Red Sea and the Gulf of Aden, citing the deployment of a U.S.-led military operation aimed at securing trade in the area.
The recent rise in oil prices helped to pare a quarterly decline, but oil is still on the path of annual decline (by about 8%), as traders are concerned that, despite promises by OPEC+ members to further reduce production, global crude oil supply may exceed demand next year.