• Oil prices rally beyond $93 with the US dollar losing ground.
• Rumors of easier COVID restrictions in China have boosted market mood.

WTI prices have resumed the upward trend witnessed on Friday as the US oil benchmark bounced up from levels right above $90 on the early trade, to reach levels past $93 for the first time in the last four weeks.

Oil prices rally with the US dollar losing ground

Appetite for risk is prevailing on Monday as investors start pricing in a certain relaxation in the COVID-19 restrictions in China, which is easing fears about a new set of restrictions that would curb crude oil demand.

The denial of such rumors by the Chinese authorities has failed to kill market optimism which has weighed the safe-haven US dollar, providing additional support to crude prices.

In a rather thin macroeconomic docket, the Eurozone Sentix survey has shown that investors’ confidence improved in November for the first time in the last three months. This, and the positive Non-Farm employment levels seen on Friday have contributed to feeding investors’ optimism on Monday.

The US Dollar Index, which measures the value of the US dollar against a basket of the most traded currencies, drops 0.3% on the day, to reach session lows right above 110.00, after having peaked at 113.15 on Thursday.

Technical levels to watch