Crude oil prices had a neutral to slightly lower trade today. Since Monday prices have remained somewhat positive. It recovered from the low of 6627 and inched higher towards morning high of 6484. The renewed optimism on China’s demand recovery overrode recession worries over growing U.S. crude inventories and tightening monetary policy in Europe, supported in recent pullback.
Brent crude futures edged up by 4 cents, or 0.05%, to $84.79 a barrel by 0936 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 2 cents, or 0.03%, at $78.18.
Brent has risen by about 1.9% this week, while WTI is heading for a gain of 2.4%.
In China, activity in the services sector expanded at the fastest pace in six months in February as the removal of tough COVID-19 restrictions revived demand, a private sector survey showed on Friday.
Manufacturing activity in China also grew last month, at the fastest pace in more than a decade, reinforcing expectations of a fuel demand recovery. China’s seaborne imports of Russian oil are set to hit a record high this month.
The world’s top oil importer is becoming increasingly ambitious with its 2023 growth target, aiming as high as 6%, sources involved in policy discussions told Reuters this week.
The market broadly shrugged off a 10th consecutive week of crude stock builds in the United States, as record exports of U.S. crude kept the increase smaller than in recent weeks.
Russia’s plan to deepen oil export cuts in March also helped to buoy prices
Crude oil is expect to consolidate below 6480
Crude oil prices retreated from the morning high of 6442 and are currently trading at 6389. On the above daily chart, prices are struggling to sustain above massive resistance 6480 and retreating towards 6385 levels.
We expect Crude oil prices may consolidate in between 6480-6380 levels unless either side breaks. A break below 6380 will create a probability for short time correction towards 6320-6280.
On the upside, massive resistance is seen at 6480 and a break above it could open the door for pullback. And prices may test next resistance 6522-6585.
Further, today at 8.30pm US ISM Services PMI data to be released. Forecast is seen at 54.50, slightly lower from previous reading 55.20. If the data will come according to the forecast, then Crude oil may witness pullback towards immediate support or vice versa.