Crude oil higher in the day but well off the highs
The price of WTI crude oil is selling at $74.63 up $0.86 or 1.17%. The high for the day reach $76.69. At the high, the price got close to a swing area on the hourly chart between $76.76 and $77.02. Within that area is the 200 hour moving average which is currently at $76.98. The inability to extend above that level gave the sellers the go-ahead to push back to the downside and the last four – five hours have seen declines.
Technically, the price is closing back below its 100 hour moving average at $74.89. That is a bit of a disappointment for the buyers who bought after breaking above the 100 hour moving average (see blue line in the chart above) earlier in the day.
Fundamentally the hopes for a smooth China reopen in 2023 from Covid is spurring on the demand on stronger growth. A counter wind would be the expected slowdown in other parts of the world as those countries are economically impacted by higher rates, higher inflation, and higher unemployment.
