Chat with us, powered by LiveChat

Choose country & language:

Close Icon

Oil prices remain high as EU considers oil ban

Home >  Daily Market Digest >  Oil prices remain high as EU considers oil ban

detail_image_market
author_img

Written by:
Myrsini Giannouli

23 March 2022
Share the article

Oil prices remained high on Tuesday, falling a little since Monday, with WTI trading near the $112 per barrel level. If WTI price drops, support can be found at the $100 per barrel psychological level, while resistance can be found near $130 per barrel. 

Oil prices spiked on Monday, amid reports that the EU is considering a ban on Russian oil. Talks between the EU and US governments are focused on imposing further sanctions on Ukraine. Suggestions that the EU should ban Russian oil imports are on the table, although Germany, the Eurozone’s leading economy opposes this plan. A potential EU oil and gas ban would create a severe energy crisis, driving oil prices further up. The EU has not imposed direct bans on Russian oil and gas imports so far, since the Eurozone relies heavily on Russian energy-related imports, with almost 30% of the crude oil imports, 47% of its coal, and over 40% percent of its gas imports coming from Russia. 

The US banned all oil and gas imports from Russia two weeks ago, catapulting oil prices to over $130 per barrel. The UK has similarly vowed to phase out its dependency on Russian oil and major British oil companies are already boycotting Russian oil. Already, the International Energy Agency (IEA) estimates that as many as 3 million barrels per day of Russian crude oil could be removed from the market, as a result of sanctions and of boycotting on Russian oil. A potential EU embargo on Russian energy-related products would see oil prices skyrocketing.

Over the past few months, the oil price has been going up, driven by increasing demand and limited supply. The war in Ukraine has further increased risks of disruption in the supply of oil, pushing its price further up. Last week, however, reports of a new wave of covid cases in China, forcing the country to enter lockdown once again, have pushed prices down. If the pandemic is re-ignited and countries start imposing new restrictions and re-entering lockdowns, it may signal another drop in the demand for oil and its price will decrease. 

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.

author_img

Written by:
Myrsini Giannouli

Share the article:

Latest news

main_image_market

Dollar supported by strong US treasury yields

Myrsini Giannouli 23 February 2024
main_image_market

Gold weighed down by strong treasury yields

Myrsini Giannouli 23 February 2024

Oil prices surge as US stockpiles shrink

Myrsini Giannouli 23 February 2024

Bitcoin struggles to overcome $52K barrier

Myrsini Giannouli 23 February 2024
Why TopFX
10-years
13+ 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!

IMPORTANT

The website you are now viewing is operated by TopFX Global Ltd, an entity which is regulated by the Financial Services Authority (FSA) of Seychelles with a Securities Dealer License No SD037 that is not established in the European Union or regulated by an EU National Competent Authority.

If you wish to proceed please confirm that you understand and accept the risks associated with trading with a non-EU entity (as these risks are described in the Own Initiative Acknowledgment Form and that your decision will be at your own exclusive initiative and that no solicitation has been made by TopFX Global Ltd or any other entity within the Group.

Don't show this message again

Cookies on TopFX

The TopFX website uses cookies to optimise user experience.

These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.

Manage Preferences

You can customize your selection of which cookies you want to accept.

  • Essential

    These cookies are necessary for the website to function correctly and cannot be switched off.

  • Functional

    Functional cookies allow the website to remember users' preferences and the choices you make on the website such as username, region, and language.

  • Marketing

    These cookies are used to track visitors across our websites and show you more relevant ads. Marketing cookies also include third-party cookies from partners. For more information relating to data protection & collection please view our Privacy Policy and Cookie Disclosure.