Oil Prices Surge Amid Ukraine Tensions and Increasing Demand in China

Oil prices moved upwards today amidst rising tensions from the Ukraine war and signs of recovery in China's crude oil imports. Brent crude oil futures rose by 0.1% to $73.40, while West Texas Intermediate (WTI) increased by 0.2% to $69.53 per barrel. However, increasing U.S. crude oil stocks are viewed as a factor limiting price increases. According to data from the American Petroleum Institute, U.S. crude oil stocks rose by 4.75 million barrels in the week ending November 15, while gasoline stocks decreased by 2.48 million barrels.

The renewed tension between Russia and Ukraine raises the risk of supply disruptions in the oil market. ANZ analysts indicate that this situation supports prices. On the other hand, signs show that China, the world's largest crude oil importer, has increased its purchases this month after a period of weak imports. Growing demand from China is boosting interest in oil prices and increasing activity in the markets.

Current status of oil prices: Brent oil started the week on a positive note, finding support at the $70 level before rising to the $74 threshold and continuing to hold its gains. Brent futures have recently entered a short-term downward trend due to selling from around the $80 region, testing the declining trend line once again this week. In the event of a breakout, the $75.5-$76.6 range could serve as a second resistance zone. On the lower side, a possible decline could see interim support forming at $72 before hitting the $70 limit.