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Oil soars amid supply disruptions, Bitcoin recovers from heavy selloff

Summary:

  • Oil prices soar towards 2015 highs amid fresh supply disruptions
  • Bitcoin recovers from heavy Christmas selloff
  • Asian stocks close mixed thinned by a holiday-shortened week

A holiday-shortened week starts with surge in oil prices and Bitcoin recovery after a slump from a few days ago. Moreover, the US dollar has been traded broadly lower ahead of the release of CB consumer confidence index for December. As far as stock markets are concerned the Asian session closed mixed following modest declines on Wall Street.  

Oil prices rebounded towards 2015 highs. Oil WTI touched $60 mark, whilst Brent (OIL on xStation) surged above $66. The main reason standing behind this rally was a news of an explosion on a Libyan crude pipeline. Armed assailants blew up the installations cutting Libya’s output by up to 100k bpd. The North African country’s output had been recovering in recent months after being held down for years amid armed conflict and unrest. On the other hand, the impending restart of a Forties pipeline pumping crude from the North Sea limits the extent of the current rally. Moreover, the API stock data comes into focus today. Declining US oil stocks have helped prices recover but with rising US output this trend could reverse.

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 Oil WTI continues its rally towards 2015 highs. Source: xStation5

It’s also worth mentioning that Bitcoin has halted its Christmas slump. It was the worst week for this cryptocurrency since 2013 as it declined over 30%, below $11,000 handle. A correction after a strong rally seems to be a natural thing but such large move could spook investors. Now the cryptocurrency is struggling with 61.8% Fibo retracement. Breaking above this barrier may pave the way towards $17,200 where is located a crucial resistance area.

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 Bitcoin prices recover, although there are a few solid obstacles for bulls ahead. Source: xStation5

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