WTI bulls pullback in Asia, but themes are upbeat as China reopens borders. (Pivot Orderbook analysis)

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• WTI bulls pullback in Asia, but themes are upbeat as China reopens borders.
• China issued a fresh batch of import quotas, a signal that the world’s largest importer is ramping up to meet higher demand.

The pair currently trades last at 74.78.

The previous day high was 76.9 while the previous day low was 73.89. The daily 38.2% Fib levels comes at 75.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 75.04, expected to provide resistance.

West Texas Intermediate, WTI, is down on the Asian session, losing some 0.4% at the time of writing despite hopes demand from China will improve as the country issued new import quotas. Nevertheless, overnight and at the start of the week, the news offered economic support for its flagging economy, while the US Dollar weakened, enabling investors a cheaper entry into the black gold rally.

Elsewhere, China continued to dismantle much of its strict zero-COVID rules around movement as it reopened its borders to international visitors for the first time since it imposed travel restrictions in March 2020. The BBC reported that ”incoming travellers will no longer need to quarantine, marking a significant change in the country’s Covid policy as it battles a surge in cases. They will still require proof of a negative PCR test taken within 48 hours of travelling.”

As a consequence, oil prices surged early on Monday as hopes demand from China will improve as the country issued new import quotas and offered economic support for its flagging economy. Spot West Texas Intermediate crude was last seen at o $ 74.57 bbls.

Analysts at ANZ Bank explained that ”China issued a fresh batch of import quotas, a signal that the world’s largest importer is ramping up to meet higher demand.”

”Easing COVID-19 restrictions have already boosted travel. Some 34.7m trips within the country were made on the first official day of the Spring Festival travel rush, according to the Ministry of Transport. That’s more than 40% above comparable days in 2022. Roughly 2.1bn trips are expected over the 40-day period. This comes amid tightening supplies,” the analysts said.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 74.78 at the time of writing. Pair opened at 75.02 and is trading with a change of -0.32 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 77.14, 50 SMA 79.73, 100 SMA @ 82.94 and 200 SMA @ 92.89.

The previous day high was 76.9 while the previous day low was 73.89. The daily 38.2% Fib levels comes at 75.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 75.04, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 73.64, 72.26, 70.63
• Pivot resistance is noted at 76.65, 78.28, 79.66

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