Crude Weaker On China Growth Target, Focus On Powell This Week

Oil prices rose strongly on Friday but during APAC trading today have struggled after China announced a more cautious 2023 growth target. China is the largest oil importer globally. WTI is down 0.7% to $79.10/bbl, close to the intraday low, following a high of $79.92. Brent is down 0.7% to $85.22/bbl, also close to the intraday low. The USD index is down slightly today.

• WTI is holding just above the 100-day moving average. It rose 4.6% last week and broke through resistance at the 50-day EMA. Further gains could signal a test of resistance at $80.78, the February 13 high. Brent is holding above both its 50- and 100-day moving averages.
• Saudi Arabia is not concerned about the short-term outlook for crude, as it increased the prices for most of its April shipments to Europe and Asia.
• There are no Fed speakers today and only US January factory orders and final durable goods orders print. The focus will be on Fed Chairman Powell’s appearances before a Senate panel on Tuesday and the House financial services committee on Wednesday. He is expected to reiterate that rates need to rise further.