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Oil Prices Continue to Decline

Oil prices have fallen for the second consecutive day, undoing some of the gains made before Christmas.

Crude Oil
Crude Oil

This is due to uncertainty surrounding the Chinese economy and the limited effect of Russia's response to the G7 price cap. Volatility is expected to remain high as we enter another unpredictable year full of unexpected twists and turns.

US Refilling SPR Could Support Market

The US's decision to refill the Strategic Petroleum Reserve could provide support for the market and potentially create a floor. Still, with so many variables at play, making any definite predictions is difficult. OPEC+ could announce any number of decisions that could drastically alter the market, and the ongoing conflict in Ukraine is also a potential factor.

Gold Remains Around $1,800

Gold continues to trade around the $1,800 mark, fluctuating roughly $30 on either side throughout most of December. While gold traders have an idea of what the Federal Reserve may do in the near future, they hesitate as it needs to align with the central bank's hawkish stance. However, with waning momentum, the possibility of a correction is increasing.