China considers being the world largest importer of crude oil. On Tuesday, the prices of oil seem steady due to increasing cases of covid-19 in China. Furthermore, worries of fewer consumption of oil arises due to growing number of Covid-19 cases.
In an OPEC meet, members cut down the production which thereby tightens the supply globally. Therefore, demand related worries tends to be persistent.
Moving further, the crude oil prices made a hike on Wednesday thereby clearing all the earlier losses. Besides, an incident took place in the Oman coast which upsurges the oil prices.
China eases the Covid-19 restrictions this week but still a fear of rising in number of Covid cases may damage the economic health of the country.
If we look into the inventories scenario then we witnessed a fall back by 5.8 million barrels in the past week. Moreover, today we have significant data inclusive of crude oil inventory.
Technical Analysis on Crude oil
Crude Oil Futures is currently trading at 7050. If we look into the 4 hourly chart then crude oil is forming a double top pattern which signifies a trend reversal. Furthermore, oil witnesses two support levels i.e. 6900 and 6700. Moreover, two resistance levels i.e. 7200 and 7450.
If crude oil breaches the level of 7100 then we may witness upside target of 7300—7400 levels.
All eyes on todays data. Till then, traders trade within levels.