Trading on Tuesday began with a slight rise in prices for crude oil. The perspective of the whole global economy and the recovery of demand in China, as the largest importer of oil, is under attention, for the moment.
China has removed pandemic restrictions, which has caused increased demand, so crude oil prices continue to rise. The supply may be reduced due to sanctions on Russian oil and oil products, which is the main concern for traders.
However, OANDA analyst Edward Moyi said that the dollar is stabilizing, so the rise in oil prices is also stabilizing, adding that headlines about China removing restrictions has already bored traders.
According to Moya, there is still recession risk for the U.S. economy, and some traders are skeptical of a rapid recovery in crude oil demand in China this quarter.
Concerns about a global economic downturn are fewer, so investing in oil futures and options has been the fastest in 2 years.