- WTI futures bounce up from $39.09 to reach $40.40 high.
- China's oil imports increase boosts crude prices.
- On a wider perspective, oil prices remain sideways around $40.
Front-month WTI futures are bouncing up strongly on Tuesday to regain most of the ground lost on Monday. The US benchmark crude price has surged nearly 2% on the day, favoured by news about the increase of crude imports in China
Chinese crude imports boost oil prices
Crude imports rose to the equivalent of 1.18 million barrels in September in China, according to data by the General Administration of Customs. This 2.1% month-on-month increment has eased market concerns about the negative impact on the second COVID-19 wave on global demand for oil.
Market optimism about Chinese figure, however, has been dampened by ongoing concerns about an excess of supply. Libya has reported that its largest oil field has resumed its production, which might double the country’s output, while the end of the oil workers’ strike in Norway and the return to activity in the Gulf of Mexico are weighing further on prices.
WTI prices consolidate around $40
From a technical point of view, WTI futures remain capped below $40.40 (50-day SMA) with next potential resistance at $41.45 (Sept. 18, Oct 9 highs) ahead of $43.75 (Aug. 26 high). On the downside, immediate support lies at $40.00 (100-day SMA) and below here, $39.09 (Oct.12 low) and the 200-day SMA, now around $38.30.
Technical levels to watch
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