WTI struggles near seven-week high amid China holidays

The WTI crude oil retreats from multi-day high amid lack of major positives, cautious mood ahead of key data. Sluggish markets, Lunar New Year in China limit energy buyers’ optimism.

WTI crude oil remains sidelined around $81.70, after refreshing the multi-day high above $82.00 the previous day. In doing so, the black gold portrays the market’s inaction amid an absence of Chinese players due to the Lunar New year holidays.

Adding strength to the Oil price inaction could be the cautious mood ahead of the preliminary readings of January’s activity numbers from the key economies.

The broad US dollar weakness and easing recession fears, mainly backed by China-linked optimism, seemed to have propelled the WTI crude oil to $82.68, the highest level since December 05, 2022.

Adding strength to the energy market’s positive outlook could be the news suggesting a five-month high in India’s crude oil imports and Pakistan’s readiness to push back the power shortage with international help. It should be noted that the hopes of improved festive demand from China also pushes the WTI crude oil prices ahead.