WTI finds support near $41, edges higher toward $42

Crude oil prices rose last week as WTI rose 1.65%, but gains were limited by increased US-China tensions and market sentiment.

Although WTI fell to $ 41 at the beginning of the week, it quickly reversed the trend and was last seen registering a 1% gain on the day to $ 41.65.

WTI may find it difficult to exceed $ 42 as investors are likely to remain cautious while not taking any major positions while awaiting new developments surrounding tensions between the United States and China after China confirmed that it closed the US consulate in Chengdu in response to the closure of its consulate in Houston.

“no country with a conscience or independent spirit will side with the US against China,” said China’s foreign minister Wang Yi.

Meanwhile, new lockdowns could revive concerns about the bleak demand outlook and put additional weight on WTI as the numbers of Covid-19 cases increase.

Investors are awaiting the American Petroleum Institute data for oil inventories and the US Energy Information Administration data to obtain any new momentum later this week.