- The WTI recovered the 82 dollars, supported in part by the weakness of the dollar.
- Concerns about rising COVID cases in China, falling oil imports and reserve sales threaten the rebound.
- Ahead: US retail data and focus on what’s new from China.
The price of a barrel of WTI (NYMEX futures) is approaching a two-month high of $ 82.47 reached earlier this week, staging a strong rebound from levels below $ 81.
The continued downward momentum in the US dollar is being a supportive factor for oil. Added to this is that markets are bracing for an imminent release of China’s crude reserves. Reuters previously reported that the Asian giant plans to release its strategic oil reserves (SPR) around the Lunar New Year holidays as part of a plan coordinated by the United States with other large consumers to curb price increases.
The latest customs data showing China posted its first annual drop in crude shipments in two decades in 2021.
In addition, the Chinese authorities have asked people not to travel during the Lunar New Year holidays, in an effort to contain the contagion of the Omicron variant. Investors believe that Chinese restrictions could dampen demand for fuel, which could be negative for the price of oil.
On Friday, the US December retail sales report and the weekly count of oil rigs appear on the agenda.
WTI: Technical levels to consider
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