WTI rallies as US dollar impacted by risk-on

American crude oil rallies and trades at $92.24, benefiting from the US dollar which is losing ground. WTI prices resumed the upward trend that started on Friday as the US crude oil bounced up from levels right above $90 on the early trade, to reach levels past $93 for the first time in the last four weeks.

Risk appetite is prevalent on Monday across financial asset markets as investors start pricing in some kind of relaxation in the COVID-19 restrictions in China, which is easing concerns about fresh restrictions that would impact oil demand.

China’s authorities denied the news but still market optimism maintains momentum. This has dragged the safe-haven US dollar lower, providing additional support to crude prices.

Additionally, investors’ optimism on Monday is fed by the Eurozone Sentix survey indicating how investors’ confidence improved in November for the first time in the last three months and the robust NFP data released on Friday.

The US Dollar Index, which measures the value of the US dollar against a basket of the most traded currencies, drops 0.3% on the day, to reach session lows right above 110.00, after having peaked at 113.15 on Thursday.