• Upbeat China’s data and the removal of strict Covid-19 measures to boost oil demand.
• A softer US Dollar was a tailwind for WTI.
• WTI Price Analysis: It could aim towards the 100-DMA around $83.00.

US Western Texas Intermediate (WTI) crude oil gains some ground and hits a two-week high above $80.00 per barrel on Tuesday after Chinese data beat estimates and painted an optimistic outlook amidst its borders reopening. Therefore, WTI is trading at $81.11 PB, up by more than 2.50%.

Chinese data revealed during the Asian session improved oil’s outlook for 2023. The National Bureau of Statistics showed that Gross Domestic Product (GDP) for Q4 improved to 2.9%, above estimates of 1.6%, while for the full year, GDP stood at 3% and trailed 2021 at 8.1%. Even though 2022 is the second worst reading since 1970, China’s relaxation of Covid-19 measures would positively impact its domestic economy.

In the meantime, a softer US Dollar makes greenback-denominated oil cheaper for other currency holders.

Elsewhere, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that Chinese oil demand would grow 510,000 barrels per day this year while it kept its 2023 global demand growth forecast unchanged at 2.22 million BPD.

WTI Technical Analysis

After bottoming around 2022 lows of $70.10 PB during December, WTI resumed an uptrend of almost one month that peaked at around $81.44. Last Friday, WTI broke a two-month-old downslope trendline on the upside, which kept WTI prices from falling below $78.00. Additionally, the Relative Strength Index (RSI) aimed higher, while the Rate of Change (RoC) suggests buyers are gathering momentum.

Therefore, WTI’s first resistance level would be $81.00, which, once cleared, would expose $82.00, followed by the 100-day EMA at $82.95.