West Texas Intermediate (WTI) US crude oil prices rose for the second day on Monday, recovering from a one-week low of around $68.40-$68.35 reached on Friday. However, the price movement lacks strong momentum, hovering around $69.75-$69.80 during the Asian session, up by less than 0.50%.
A weekend editorial from a media outlet linked to China’s Ministry of Housing and Urban-Development suggested further measures to support the property market recovery.
This eased concerns about a slowdown in demand, along with worries over supply disruptions due to tighter sanctions on Russia and Iran, providing some support for oil prices.
Additionally, the US dollar remains below the two-week high reached on Friday after the November Personal Consumption Expenditure (PCE) report showed signs of moderating inflation. A weaker dollar helps boost USD-denominated commodities like crude oil, although significant price gains are unlikely.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) recently postponed planned supply increases by three months and extended the unwinding of cuts until the end of 2026. The International Energy Agency also pointed to increasing oil supply from non-OPEC+ countries, which could limit further price increases.
As a result, it’s best to wait for stronger buying momentum before expecting more intraday price increases. Traders are also awaiting the release of the Conference Board’s Consumer Confidence Index, which could influence USD dynamics and impact crude oil prices.
