Oil prices advance
This week, oil gained +1.31%, despite the week’s volatility being above 5%. The rise in the prices could have, predominantly, had fundamental background. The case is easing lockdowns in China’s districts, but most importantly in Shanghai. This signals a possible rise in demand for crude oil, which positively affects the price of a commodity. Moreover, Bloomberg writes that “China’s top oil producer China National Petroleum Corp. this week forecasted rising demand in the third quarter“.
Week’s price development of Crude oil. 30 minutes chart. Source: tradingview.com
Crude oil is still in the uptrend from April. As is shown at the chart below, the price development is set by higher highs (blue lines) and higher lows (white lines). Moreover, there is a rectangle with a support area we pointed out in the article from the 27th of May. This support area was tested later, at the beginning of this month. To add, this test created a new higher low at 111.21$ and the price went up.
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The uptrend in Crude oil, 60 minutes chart. Source: Author’s analysis