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Growing Chinese Crude Imports Provide Support To Oil Prices With WTI Targeting $30 And Brent $35

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  • Oil prices inch higher on rebounding Chinese crude imports
  • WTI was up to $24.03 and Brent crude up to 29.75
  • Easing of lockdowns to boost US gasoline demand

On Thursday oil prices inched higher as data indicated that there was a rebound of Chinese crude imports but analysts are expecting the supply glut to cap the gains as the COVID-19 pandemic continues to suppress global oil demand.

Oil prices gaining on the prospect of increasing demand

US WTI futures were up 0.2% at $24.03 per barrel, having dropped over 2% in the previous trading session. On the other hand, Brent crude added 0.1% to around $29.75 per barrel, having dropped 4% in the Wednesday session.

The data showing an increase in crude imports in China for April boosted sentiment that demand might be crawling back. In April China saw crude imports increase to around 10.42 million barrels/day from the 9.68 million barrels per day reported in March

Similarly, the easing of lockdown measures could see US old demand grow. The lifting of the orders is driving demand growth as people return to work and with around 35% of oil consumption in the US being for driving from and to work. With people returning to work in May, demand is expected to grow. So far, around 23 states have eased lockdown measures or let it to expire, and this represents around 41% of US oil demand.

Time                            : 07-05-2020

Pivot                           : $24.02

Technical View           : Long above $24.22

Target                         : $24.42 next 3 targets $26.02, $26.56 and $28.51

Technical View           : Short below 23.82

Target                         : $23.62 next 3 targets $21.86, $19.54 and $17.53

Comments                  : Sideways

Last Price                    : $24.23 

Crude oil Analysis

According to OANDA senior market analyst Edward Moya, the oil prices could ultimately settle for a wide range of $10. WTI crude could target resistance at around $30 per barrel, while Brent crude is targeting the $35 per barrel level. Currently, Brent is up 0.27% to 29.86 while US benchmark oil WTI is up 1% to 24.23.

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