WTI up on China-linked sentiment as correction eyed

On the day, WTI crude oil is up due to mood related to China. Intense resistance is being tested by WTI. The dynamic trendline support is being watched for bears, who are lurking.

The largest oil and gas producer in China, China’s National Petroleum Corp. (CNPC), reduced its prediction for China’s crude oil demand in 2023 from +5.1% to 756 MMT to +3.5% to 740 MMT on 20 June.


WTI has surged by about 2.25% to $74.82 after fluctuating between $73.03 and $74.92. Tuesday saw a rise in crude prices after China extended loan relief to developers as part of its efforts to stimulate the real estate market. The decreased Chinese energy demand, though, continues to raise concerns.

The market is once again receiving support from energy supply issues as Saudi Arabia extended its voluntary production cutbacks and Russia decided to reduce exports rather than output, all of which allay some concerns about the country’s noncompliance with the OPEC+ agreement.


Thoughts were dampened and the market’s mindset remained pessimistic due to the dramatic decline in our broad index of commodities demand and market expectations of prolonged hawkish central bank policies. In this regard, the bar is still higher to see positive algorithmic flow, although WTI and Brent crude are still susceptible to CTA selling below $71.15/bbl and $75.20/bbl, respectively.