Russia Invasion of Ukraine Drives Oil Above $100

Crude Oil, US Crude (WTI), Brent Speaking Factors

  • Crude oil prices surge as Russian troops invade Ukraine
  • Brent crude breaks $100 per barrel, is WTI subsequent?
  • Larger power prices exacerbate fears of rising inflation inserting the Fed below further stress

As Russian troops proceed to comb by Ukraine, fears surrounding the consequential results on power costs have boosted demand for commodities, pushing oil to yet one more recent seven-year excessive.

With world leaders now trying to impose extra stringent sanctions towards Russia, the third largest oil producer and a serious provider of gasoline has posed a further menace to policymakers who’re already struggling to realize management over inflation.

Whereas roughly one-third of Russia’s gasoline exports to Europe bypass the Ukraine, elevated geopolitical dangers and fears of additional provide constraints have supported the upward trajectory pertaining to each WTI and Brent, making costs weak to additional developments within the scenario.

US Crude Oil (WTI) Technical Evaluation

WTI has just lately handled beneath channel help as costs edge nearer to the $100 mark. As help holds agency on the $95.85 Fibonacci level, the geopolitical backdrop will possible proceed to carry as traders worth within the likelihood of elevated provide constraints.

Because the CCI (commodity channel index) stays in overbought territory, rising tensions might see WTI retesting the higher sure of the channel with a chance to check the 2014 excessive at round $107.

US Crude Oil (WTI) Each day Chart

WTI Crude Oil Daily Chart

Chart ready by Tammy Da Costa utilizing TradingView

Brent Crude Technical Evaluation

A big surge within the worth of Brent crude allowed bulls to lastly break freed from each channel and Fibonacci resistance with costs hovering above $100 per barrel earlier than peaking at round $105.

Given the extent to which Europe depends on Russia for its power sources, the choice to halt the Nord Stream 2 pipeline venture (the venture designed to move gasoline from Russia to Germany) has raised further issues over additional disruptions to the already constraint oil provide.

Brent Crude Each day Chart

Crude Oil Outlook: Russia Invasion of Ukraine Drives Oil Above $100

Chart ready by Tammy Da Costa utilizing TradingView

As with WTI, the CCI (commodity channel index) for Brent crude has risen into overbought territory with a break of $105 bringing the following zone of resistance into play at round $111. If bulls are in a position to keep management above this degree then a take a look at of $120 could also be possible within the foreseeable future.

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and observe Tammy on Twitter: @Tams707

Source link

Leave a Reply

Your email address will not be published.