Crude oil demand forecast backed by China growth prospects. Analysts say that China’s soaring domestic oil demand will persist.
Crude oil demand structure discussed in Houston summit
As top oil executives at an energy conference in Houston discussed supply constraints and expectations for increasing Chinese demand. due to it, the oil prices nudged marginally higher on Monday. Regaining from recent losses.
According to oil main Chevron Corp (CVX.N) Chief Executive Mike Wirth. The oil market and logistics are constrained and vulnerable to any unanticipated supply disruption. Because Russian oil is still reaching the market but at a different cost. Wirth made this statement at the CERAWeek energy convention.
Crude oil Fundamental Outlook
This Tuesday, crude oil is trying to have its sixth straight good day as the Chinese economy has been doing well.
Markets were anticipating growth of between 5.5 and 6 percent, even though China updated its growth projections (GDP) higher to 5 percent, after roughly 3 percent last year.
Market forces have since discounted this and appear to be focusing on the fact that there has been a notable increase, which should increase oil usage and increase the likelihood that GDP figures will exceed the 5percentage forecast.
Stockpiles and spare capacity increased at the end of 2022. But since China’s “re-open” and the lifting of COVID limitations, this trend appears to be waning.
Crude Oil markets and investors focusing on Powell’s testimony
Today’s main event is Fed Chair Jerome Powell’s testimony before the Senate Banking Committee, which is likely to incite some market volatility (see the economic schedule below).
It will be crucial to provide direction regarding the Fed’s thinking in upcoming meetings after considering the positive US economic statistics.
Economic Activity Schedule
Financial markets presently anticipate a 25 basis point rate increase at the upcoming meeting, though a 50 basis point increase is not entirely out of the question. With the USD strengthening, anything even mildly hawkish might have an impact on crude oil prices.
The API weekly report, which is released at the end of the US trading session, will be in the limelight. If stocks continue to decline, crude oil may garner more support.
Crude oil futures and estimated contract prices (dollars per barrel)
Technical Perspective and summary
The daily Brent crude graphic illustrates the price action that has exceeded the 85.00 psychological support level. While still staying within the bear flag chart pattern.
As the Relative Strength Index (RSI) seeks to climb higher toward overbought territory, this might indicate to tight rise followed by medium-term weakness.
| Name | Type | 5 Minutes | 15 Minutes | Hourly | Daily |
|---|---|---|---|---|---|
| Brent Oil
86.08 |
Moving Averages: | Buy | Buy | Buy | Buy |
| Indicators: | Strong Buy | Sell | Sell | Strong Buy | |
| Summary: | Strong Buy | Neutral | Neutral | Strong Buy | |
| Crude Oil WTI
80.39 |
Moving Averages: | Buy | Buy | Buy | Strong Buy |
| Indicators: | Strong Buy | Sell | Sell | Strong Buy | |
| Summary: | Strong Buy | Neutral | Neutral | Strong Buy |
Important resistance values
$90.00 \s$87.28
Important support levels:
$50 for a 50-day SMA
$82.38
