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<p>Oil is in demand today for two big reasons:</p><ol><li>China is taking clear steps towards reopening. Xi today said China will continue to open up , there are reports on a plan to scrap covid flight suspensions and the former chief eipdemiologist at China's CDC <a href="https://www.forexlive.com/news/china-to-make-significant-changes-to-covid-policy-soon-says-former-government-expert-20221104/" target="_blank">said </a>substantial changes will take place soon</li><li>The G7 and Australia agreed to the long-rumored n oil price cap and it will have a hard cap</li></ol><p>Obviously, global demand for oil is coming under pressure due to slow economies but that's counteracted with OPEC pumping less this month, SPR releases running off and the  news.</p><p>Keep in mind that this year's oil rally to $120 was on expectations of falling n oil exports due to the original sanctions and that never happened, leading to the drop to $80. Once again the market is creating expectations of exports falling and it could be the same kind of trap. At the same time, there are signs of n production flagging as sanctions bite.</p><p>Goldman Sachs was out with a <a href="https://www.forexlive.com/news/goldman-sachs-continues-to-forecast-a-rip-in-oil-prices-20221103/" target="_blank">note </a>calling for $115 brent yesterday and it looks possible based on the chart. The downtrend broke last month  and was successfully retested. The October high of $93.46 looms, followed by the 200-day moving average at $98.49.</p>

                This article was written by Adam Button at forexlive.com.