Prices Range Trading Ahead Of Key Events This Week

Oil prices ended last week down around 1.5% but are trading down slightly and in a range of around a dollar today, as the market awaits signs of increased Chinese demand, the impact of sanctions on Russian exports and Wednesday’s Fed & OPEC decisions. The USD is down slightly.

• WTI is below $80/bbl again at $79.52 around the intraday low and in line with the 100-day simple moving average. Brent is $86.45, also at its low. Resistance remains at $82.66 for WTI; it approached it on Friday but couldn’t break through. Initial support is $78.45, the January 19 low.
• In China, Sinopec said that petrol sales were up 20% y/y over the Lunar New Year holiday week. (bbg) Some analysts believe that crude markets are yet to price in the impact of China’s reopening on oil demand.
• Troubles in the Middle East over the weekend have provided some support to crude.
• The calendar remains quiet in the northern hemisphere later with the highlight the EC survey for January and only the Dallas Fed manufacturing index in the US. The OPEC+ and Fed meetings on Wednesday February 1 and the January payrolls on Friday remain the focus of the week.