WTI struggles to cheer Russia, OPEC news below $70.00 as China woes prod Oil buyers

WTI crude oil remains depressed around the intraday low, mildly offered near $69.45 by the press time of the mid-Asian session on Monday, as the energy market flashes mixed signals.

That said, hopes of more Oil demand and supply crunch, backed by OPEC and Russia catalysts, contrast with the fears of slower economic growth in the world’s biggest commodity user China.

Recently, Haitham Al Ghais, the Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), raised hopes of higher Oil demand while saying, “OPEC sees global oil demand rising to 110mn barrels per day (bpd) by 2045.” On the same line were comments from Saudi Aramco CEO Amin Nasser who said, “Oil markets fundamentals remain generally sound for the rest of the year.”

Also read: OPEC’s Al Ghais: OPEC sees global oil demand rising to 110mn bpd by 2045

Previously, headlines suggesting the geopolitical turmoil surrounding Russia and hopes of China stimulus allowed the Oil price to keep the rebound from the lowest level in two weeks, marked the previous day.

Also read: Weekend News: Russia, China and SNB’s Jordan were in focus

However, news suggesting that the global rating giant S&P cut China’s Gross Domestic Product (GDP) growth forecasts for 2023 to 5.2% from 5.5% previous estimations weigh on the Oil price. On the same line are concerns suggesting major investors’ pause in China investment, hawkish comments from the Fed officials and comparatively upbeat US data.

Amid these plays, the US Dollar Index (DXY) remains pressured around the intraday low of 102.70, paring the biggest weekly gain in four, whereas the S&P500 Futures print mild gains.

Moving on, headlines surrounding China and Russia may entertain Oil traders but major attention will be given to the US inflation and central bankers’ speeches at the European Central Bank (ECB) Forum, as well as the US Bank Stress Tests.

Technical analysis

Friday’s bullish Doji candlestick challenges WTI Crude Oil sellers unless the quote slips beneath the one-month-old horizontal support zone near $67.00.