Oil move pending China's direction
Updated
Brent Crude Oil price is expected to consolidate between 93 to 100, with the main catalyst being China's Covid Policy.
There were on-and-off hopes of China's reopening.
However, we are still very much on the fence given the continued strict Covid measures in China.
On the other hand, China did announce an easing of the measures, reducing the quarantine time. Another positive news is that the NHC is planning to accelerate vaccinations, which is crucial before further easing on their zero COVID policy.
We don't know how long that will take, or when it will be in effect.
Buys on support above 93 and sells on resistance at 100, until we have a clear path on China's reopening. Overall, looking more for buys given the pretty much firm demand in oil. Keep an eye out for OPEC oil report on Monday, 14 Nov 2022.
There were on-and-off hopes of China's reopening.
However, we are still very much on the fence given the continued strict Covid measures in China.
On the other hand, China did announce an easing of the measures, reducing the quarantine time. Another positive news is that the NHC is planning to accelerate vaccinations, which is crucial before further easing on their zero COVID policy.
We don't know how long that will take, or when it will be in effect.
Buys on support above 93 and sells on resistance at 100, until we have a clear path on China's reopening. Overall, looking more for buys given the pretty much firm demand in oil. Keep an eye out for OPEC oil report on Monday, 14 Nov 2022.
Note
Correction: China is world's 2ND largest oil importer. Missed out "2ND" in callout on chart
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