Chat with us, powered by LiveChat

Elija el país y el idioma:

Close Icon

Oil prices bounce back supported by China economy stimulus

Home >  Daily Market Digest >  Oil prices bounce back supported by China economy stimulus

detail_image_market
author_img

Written by:
Myrsini Giannouli

27 April 2022
Share the article

WTI price had dropped below the $100 per barrel key level on Monday, but rebounded on Tuesday, climbing to approximately $103 per barrel. If the WTI price drops, support can be found at the $94.5 per barrel level and further down at the $90 per barrel level, while resistance can be found near $118.3 per barrel. 

Oil prices have dropped due to expected reductions in demand, spurred by Covid lockdowns in China, as well as by reduced global economic growth. 

Covid restrictions in China have raised fears of a large decrease in global oil demands. China is the largest importer of crude oil and the strict Covid lockdowns had been reducing global oil demand. The large economic hub in Shanghai has been in a zero-Covid lockdown for weeks now and there are fears that China’s capital city of Beijing will soon follow with strict Covid restrictions.

On Tuesday however, China’s Central Bank announced plans to support the country’s weakening economy. The expected economic stimulus boosted demand for oil and prices bounced back up.

Oil prices are especially volatile, as competing factors affect oil supply and demand. The IMF meetings last week have pointed to a marked reduction in global growth, signaling a fall in the oil demand and the IMF has cut its global growth forecast.

The crisis between Russia and Ukraine however, has been intensifying concerns of disruptions in oil distribution, supporting oil prices. The US has already banned all oil and gas imports from Russia, with as many as 3 million barrels per day of Russian crude oil potentially removed from the market as a result of sanctions and of boycotting of Russian oil. 

The EU is still hesitant to enforce an embargo on Russian oil, as many of its member states, especially Germany, depend heavily on Russian oil imports. OPEC has warned the EU that it would be impossible to replace the 7 billion barrels per day of Russian oil exports. The EU is expected to enforce fresh sanctions on Russia this week, but it is doubtful that oil imports will be targeted directly, as most EU member states are in favor of gradually weaning off Russian oil imports.

US Crude Oil inventories are scheduled to be released on Wednesday and may affect the price of oil, as fluctuations in supply can cause price volatility.

WTI 1hr chart

TRADE WTI

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

author_img

Written by:
Myrsini Giannouli

Share the article:

Latest news

main_image_market

US economic growth boosts Dollar

Myrsini Giannouli 29 March 2024
main_image_market

Gold prices rise to a fresh all-time high

Myrsini Giannouli 29 March 2024

Oil prices gain strength on supply concerns

Myrsini Giannouli 29 March 2024

Bitcoin breaks through $70,000 barrier

Myrsini Giannouli 29 March 2024
Por qué TopFX
10-years
13+ años

presencia en el sector como proveedor de liquidez

Spreads
Spreads desde 0.0 pips

y una ejecución fiable

Segregated
Fondos de clientes

segregados

First-class
La mejor

atención al cliente

Abra su cuenta real en 3 pasos
Paso 1

Rellene el formulario
de registro y pulse en
"Crear cuenta".

Paso 2

Una vez esté en la zona segura de cliente, por favor proceda a cargar su prueba de identidad y prueba de dirección.

Paso 3

Cuando su cuenta real se apruebe, ¡puede depositar fondos y empezar a operar en la plataforma que quiera!

IMPORTANTE

El sitio web que está viendo ahora es operado por TopFX Global Ltd, una entidad regulada por la Autoridad de Servicios Financieros (FSA) de Seychelles con una Licencia de Agente de Valores No SD037 que no está establecida en la Unión Europea o regulada por una Autoridad Nacional Competente de la UE.

Si desea continuar, confirme que su decisión será por su propia iniciativa exclusiva, y que TopFX, o cualquier otra entidad dentro del Grupo no han realizado ninguna solicitud.

No volver a mostrar este mensaje

Cookies en TopFX

La página web de TopFX usa cookies para optimizar la experiencia del usuario.

Estas cookies pertenecen a las siguientes categorías: esenciales, funcionales y publicitarias. Las cookies publicitarias también pueden incluir cookies de terceros.

Administrar preferencias

Puede personalizar su selección de las cookies que desea aceptar.

  • Esenciales

    Estas cookies son necesarias para que la página web funcione correctamente y no se pueden desactivar.

  • Funcionales

    Las cookies funcionales permiten que la página web recuerde las preferencias de los usuarios y las elecciones que hagan en la página web, como el nombre de usuario, la región y el idioma.

  • Publicitarias

    Estas cookies se utilizan para rastrear a los visitantes en nuestros sitios web y mostrarle anuncios más relevantes. Las cookies de marketing también incluyen cookies de terceros de socios. Para obtener más información relacionada con la protección y recopilación de datos, consulte nuestra Política de privacidad y Divulgación de cookies.