Crude oil markets are experiencing a modest uptick in pre-holiday trading on December 24, 2024, driven by a mix of geopolitical concerns and expectations of a potential crude surplus. Analysts from Sevens Report Research highlight that ongoing geopolitical tensions, particularly the Russia-Ukraine conflict and Israel's disputes with Iranian proxy groups, are maintaining a level of fear in the market. This geopolitical backdrop has provided some support for West Texas Intermediate (WTI) crude, which has managed to stay above the upper $60s per barrel. However, the market is also grappling with the possibility of a crude surplus, as the outlook for demand remains uncertain, potentially leading to a bearish trend in the coming months.
The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) is currently priced at $17.53, reflecting a 2.01% decrease from its previous close.