- Crude oil regained power with a jump of over 60%
- China declared the annual meeting of the National People Congress
- With de-escalation measures implemented in some major cities, the demand for oil increased
Last week, the oil dropped from 22 to $10.55 after reopening the new May contract.
This week, oil regained power after testing the 10.55$ mark twice as mentioned with the two yellow circles. The price failed to break this level downward along with a cross on the MACD oscillator (green arrow) indicating a bullish sentiment of the investors. WTI oil made a rebound and moved upward to the 16$ level by appreciating more than 60%.
The bullish bias is what obvious on the oil chart, so if the price continues its ascent, we could see the price reaching the 18.55$ a barrel. This level could not be an easy test for the oil since it coincides with 100 SMA.
What pushed the price of oil upwards?
With major cities started to ease the lockdown measures, the demand for oil started to rise. This built a bullish bias among oil investors.
China, one of the biggest importers of oil, stated that it will hold the National People Congress in May. This indicates that the pandemic is way behind China now, and normal life starting to be seen in “Wuhan” again.
Some more positive news comes from the United States where the Gilead Sciences announced promising results for a drug that can help the end of coronavirus spread.
White House health advisor Dr. Anthony Fauci said Wednesday that data from a coronavirus drug trial testing Gilead Sciences’ antiviral drug remdesivir showed “quite good news” and sets a new standard of care for Covid-19 patients. As per CNBC
With the good news coming around the world along with an easing of lockdown measures, could we see the price of oil surpassing the 18.55$ per barrel?