- Easing in restrictions in Shanghai underpins oil prices.
- No progress in talks over the Ukraine war.
- WTI is approaching $100.00 a barrel.
On Tuesday the Oil prices are rising significantly rebounding from lows in weeks. A barrel of WTI trades at $97.75 (platforms), up more than 4% and erasing Monday’s losses.
The easing of restrictions in the Shanghai area, which had been imposed by COVID cases, was a positive factor for crude oil prices, which despite the rebound, still face a certain negative trend. A rise above $103.00, where a bearish line passes, could change the very short-term bias. While the break of $93.00 could enable more downside, with a possible target of $90.00.
Beyond China, the focus remains on the lack of progress in talks between Ukraine and Russia. A Russian offensive is expected. At the same time, there is speculation about the next possible sanctions against Russia.
As far as data is concerned, the key on Tuesday will be US March inflation. which is expected to reach 8.4% compared to a year ago. The rise in energy prices is one of the factors that is driving inflation throughout the world. Another important piece of information will be the API for crude oil inventories to be published after the close of Wall Street.
Technical levels
Source: Fx Street
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