Oil has launched a new week's trading on a positive note with Brent and WTI trading almost 3% higher on the day each. Chinese reopening is the main driver of the move. Starting from January 8, 2023 China no longer requires people arriving in the country to undergo a quarantine. Negative Covid test result is enough to enter China now. Moreover, Chinese authorities expect traffic during the upcoming Chinese New Year holiday to double from 2022 levels and amount to over 2 billion passengers. Those news boosted hopes for a pick-up in Chinese oil demand and it is pushing crude prices higher.
Taking a look at WTI (OIL.WTI) at H4 interval, we can see that the price is attempting to make a break above the resistance zone in the $76 per barrel area, marked with 23.6% retracement and previous price reactions. Break above would pave a way for a move towards $77.50 swing level and potentially to resistance zone in the $79 area, marked with 38.2% retracement.
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Source: xStation5
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