Crude Oil opened with a large gap at the beginning of April, after OPEC+ decided to cut production in a surprise move. Buyers pushed higher, with US W
Crude Oil opened with a large gap at the beginning of April, after OPEC+ decided to cut production in a surprise move. Buyers pushed higher, with US WTI crude reaching around $83.50, but we saw a reversal after the failure to break above the 200 daily SMA, while the US economy has been increasingly showing signs of weakness since then, which weighed on the market sentiment and on Oil prices.
Last week, the banking jitters returned as JP Morgan was forced to take over First Republic Bank, which accelerated the decline in crude Oil. US Oil fell to $63.80 by Thursday, but we saw a quick reversal on Friday, as buyers pushed the price above $70 and today the bullish momentum has continued during the European session, with WTI around $10 off the lows.
Oil buyers continued to remain in charge earlier today, following the recovery toward the end of last week. The market sentiment was lifted by the positive US jobs report, which had a positive impact on most risk assets. The report showed that last month, the US added 253K non-farm jobs, well over expectations of 160K and the revised figure of 165K from March. Additionally, the unemployment rate dropped to 3.4% in April, reaching its lowest level since 1969.
The market mood was further boosted by Chinese tourist travel figures, revealing that 274 million domestic trips were taken during the Golden Week holiday period. This is seen as a positive sign amidst overall market disappointment regarding the economic rebound in China following its reopening after three years of coronavirus lockdowns.
WTI
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