Choose country & language:

Oil prices move closer to $100 per barrel as the Ukraine crisis escalates

Home >  Daily Market Digest >  Oil prices move closer to $100 per barrel as the Ukraine crisis escalates

Written by:
Myrsini Giannouli

23 February 2022
Share the article

Oil prices jumped to an eight-year high last week, amid growing fears of a Russian invasion against Ukraine. On Monday morning, hopes of a peaceful resolution to the crisis in Ukraine were revived, amidst reports of a possible peace summit between Russia and the US, brokered by French President Emmanuel Macron. The announcement of a possible meeting between the two presidents revived hopes of a de-escalation of the crisis, putting pressure on the price of oil. WTI price dipped to $90.6 per barrel following the announcement but gained strength later in the day as doubts were expressed on whether the meeting would take place.

Hopes for a diplomatic resolution to the issue were diminished late on Monday, as Vladimir Putin signed a decree recognising the independence of the two separatist regions Donetsk and Luhansk in eastern Ukraine. Immediately afterward, he ordered Russian troops in these regions, in a ‘peacekeeping’ mission as he declared, effectively invading Ukraine. The EU, the UK, and the US have condemned the Russian President’s actions and are prepared to enforce economic sanctions on Russia. Oil price is expected to receive a boost over the next weeks, as announcements of economic and trade sanctions against Russia may create an energy crisis.

The price of oil has been increasing over the past months, as existing international inventories are tight and supply is trying to catch up with rising demand. There are reports, however, that Iran could add 900,000 barrels a day in the future if a deal with the US is struck over its nuclear program. The reported progress on the Iran nuclear deal has put pressure on the price of oil, counterbalancing the effects of the crisis in Ukraine.

Oil price traded above $95 per barrel early on Tuesday, testing the $95.8 per barrel resistance level but withdrew to approximately $93 per barrel later in the day. WTI is still trading in an uptrend, but in case the uptrend is reversed, support may be found at the $82.4 per barrel level and further down around $78.8 per barrel and $77.8 per barrel.

WTI 1hr chart

TRADE WTI

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

The dollar remains strong on robust US economic data

Myrsini Giannouli 28 September 2022

Gold prices pressured by a strong dollar

Myrsini Giannouli 28 September 2022

Oil prices edge higher on supply concerns

Myrsini Giannouli 28 September 2022

Cryptocurrencies volatile amid market turbulence

Myrsini Giannouli 28 September 2022

Why TopFX

10-years

10-years

industry presence
as a Liquidity Provider

Spreads

Spreads
from 0.0 pips

and reliable execution

Segregated

Segregated

client funds

First-class

First-class

customer support

Open your Live Account in 3 Steps

Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!