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Oil prices development backed by easing restrictions in China

Oil is technically in an uptrend from April and data from China could support staying in it for some time.

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“. 

Read also: Ban on the sale of combustion engine cars in Europe

Week's price development of Crude oil. 30 minutes chart. Source: tradingview.com

Week’s price development of Crude oil. 30 minutes chart. Source: tradingview.com

Technical analysis

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

The uptrend in Crude oil, 60 minutes chart. Source: Author’s analysis

Tomas is a professional trader and money manager on foreign exchange market from 2014. His main domain are commodities. Experiences gained due this period are transformed to consul...

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