Long on OIL based on USD and China

FX:USOIL   CFDs on Crude Oil (WTI)

The reopening of the Chinese economy could lead to an increase in demand for oil. Chinese authorities have issued an additional batch of oil import quotas for domestic refiners
On the other hand, Chinese oil inventories have already surpassed those of the United States, mainly thanks to off-shore crude oil storage
Global off-shore crude inventories at extremely high levels compared to all-time highs. However, they are still below levels at the start of the Covid-19 pandemic, when prices fell to extremely low levels.

At the same time, operating rates at Chinese refineries in the Shandong region are below historical averages, meaning oil demand has yet to respond to China's reopening.
Goldman Sachs expects oil prices to climb to $105 a barrel by the end of 2023.
The weakness of the dollar also helped support energy prices. The February contract on a barrel of WTI crude gained 1.9% on Friday, to end at 79.86 dollars, on the New York Mercantile Exchange.

Price forming a Double Bottom (neckline reached)
High volume on $88.0
MMA20 about to increase crossing MMA50
Price over both Moving Average
10% aimed
Possible hedging strategy by Buying USD/CAD


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