Chat with us, powered by LiveChat

Wybierz kraj i język:

Close Icon

WTI price rises amidst mounting geopolitical pressures

Home >  Daily Market Digest >  WTI price rises amidst mounting geopolitical pressures

detail_image_market
author_img

Written by:
Myrsini Giannouli

22 February 2022
Share the article

Oil prices jumped to an eight-year high last week, amid growing fears of a Russian invasion against Ukraine. Oil price benefitted from mounting geopolitical tensions and WTI rose almost to $96 per barrel, but dropped again later in the week to $90.7 per barrel, amidst reports of a possible de-escalation of the crisis in Ukraine. 

US President Joe Biden issued a warning to the Kremlin on Friday, of extraordinary and crippling economic sanctions against Russia in the event of an attack against Ukraine. Ceasefire violations and shelling have been reported the past few days near the eastern Ukrainian borders, with each side accusing the other of the incidents. During the weekend, French President Emmanuel Macron took a leading role in diplomatic negotiations, opening a dialogue with his Russian counterpart, Vladimir Putin.

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 White House announced that US President Joe Biden has agreed ‘in principle’ to a meeting with his Russian counterpart Vladimir Putin, as long as Russia does not invade Ukraine. 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, with Kremlin spokesperson Dmitry Peskov stating that there were "no concrete plans" for a meeting between the two presidents.

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 stated, effectively declaring war on Ukraine. The EU 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 considerable 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. US crude oil inventories released last Wednesday however, increased unexpectedly by 1.1 million barrels, putting pressure on the price of oil. In addition, there are reports 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 Biden administration is eager to close the deal and bring the price of oil down, while the foreign minister of Iran has stated that an agreement could be reached as early as March. 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 prices continued rising on Monday, going above $95 per barrel, supported by mounting tensions between Russia and Ukraine. 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.

author_img

Written by:
Myrsini Giannouli

Share the article:

Latest news

main_image_market

Dollar steady ahead of key US economic data

Myrsini Giannouli 28 March 2024
main_image_market

Gold prices advance as US treasury yields decline

Myrsini Giannouli 28 March 2024

Oil prices rise on lower-than-expected US stockpiles

Myrsini Giannouli 28 March 2024

Bitcoin struggles to maintain key $70,000 level

Myrsini Giannouli 28 March 2024
Dlaczego TopFX
10-years
13+ lat

obecności w branży
jako dostawca płynności

Spreads
Spready
od 0.0 pipsów

i rzetelna realizacja

Segregated
Segregowane

środki klientów

First-class
Najwyższej klasy

obsługa klienta

Otwórz swoje konto Live w 3 krokach
Krok 1

Wypełnij
formularz
rejestracyjny
i kliknij
"Załóż konto".

Krok 2

Po wejściu do bezpiecznej strefy klienta, prosimy o przesłanie dowodu tożsamości i dowodu zamieszkania.

Krok 3

Kiedy Twoje konto live zostanie zatwierdzone, możesz wpłacić środki i rozpocząć handel na wybranej platformie!

WAŻNE

Strona internetowa, którą właśnie oglądasz, jest obsługiwana przez TopFX Global Ltd, podmiot regulowany przez Financial Services Authority (FSA) z Seszeli z licencją Securities Dealer License nr SD037, który nie jest założony w Unii Europejskiej, ani nie jest regulowany przez adekwatny krajowy organ w ramach Unii Europejskiej.

Jeśli chcesz kontynuować, potwierdź, że Twoja decyzja będzie podjęta z własnej indywidualnej inicjatywy oraz, że nie miało miejsca nakłanianie ze strony TopFX ani żadnego innego podmiotu z Grupy.

Nie pokazuj tej wiadomości ponownie

Pliki cookies w TopFX

Witryna internetowa TopFX używa plików cookies do optymalizacji doświadczeń użytkownika.

Te pliki cookies należą do następujących kategorii: niezbędne, funkcjonalne i marketingowe pliki cookies. Marketingowe pliki cookies mogą również obejmować pliki cookies stron trzecich.

Zarządzaj Preferencjami

Możesz indywidualnie wybrać, które pliki cookies chcesz zaakceptować.

  • Niezbędne

    Te pliki cookies są niezbędne do prawidłowego funkcjonowania strony i nie można ich wyłączyć.

  • Funkcjonalne

    Funkcjonalne pliki cookies pozwalają stronie internetowej zapamiętać preferencje użytkowników i wybory dokonywane przez nich na stronie internetowej, takie jak nazwa użytkownika, region i język.

  • Marketingowe

    Te pliki cookies są wykorzystywane do śledzenia odwiedzających na naszych stronach internetowych i wyświetlania bardziej odpowiednich reklam. Marketingowe pliki cookies obejmują również pliki cookies stron trzecich, pochodzące od partnerów. Więcej informacji na temat ochrony i gromadzenia danych można znaleźć w naszej Polityce prywatności i ujawnieniu plików cookies.