Oil prices continued to climb on Tuesday, with US oil rising 5.1% in intraday trading and closing at $71.73/barrel in late trading; because the market was optimistic that the Omicron variant might not be so serious, it eased investors' concerns about the demand outlook. Preliminary data shows that the increase in Omicron cases has not overwhelmed hospitals so far, and there is almost no evidence that global oil consumption has been severely hit; Price Futures Group Inc. senior market analyst Phil Flynn said that although Omicron may cause some demand disruptions, market pricing The situation is far worse than possible, and we are returning to more real fundamentals from the fundamentals we worried about last week.

Some oil analysts believe that the plunge in oil prices in recent weeks was driven by low liquidity and the so-called negative gamma effect, which refers to options traders being forced to sell futures contracts to hedge risks; when prices have risen as they did in recent days , These traders often buy back the futures sold before, thereby further promoting the rebound.

TACenergy analysts wrote in a client report that energy and the stock market rose freely for the second consecutive day, and as Omicron concerns seem to be fading, the volatility index is falling; last week, people’s concerns about Omicron pushed crude oil prices into a bear market. On Tuesday, the U.S. Energy Information Administration lowered its Brent and WTI price forecasts for 2022 by nearly $2 each, due to travel restrictions caused by new variants.

Trading logic: Oil prices rose sharply in the first two trading days of this week, but yesterday's gains were suppressed, making the subsequent rise in market doubts. The short-term long-term unfavorable situation has eased. The MACD is expected to be a golden cross, and the RSI can break through 50, but it cannot chase it excessively. The worry of oversupply of fundamentals is increasing, and the benefits of Omicron's milder symptoms have been digested. It is necessary to pay attention to the weekly EIA crude oil inventory data in the day. The probability of the data is positive. It is recommended that investors remain cautious and bullish on oil prices.

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