Tight oil and product markets and the forthcoming US driving season are proving to support oil, as is the gradual reopening of the Chinese economy.

Europe continues to consider an embargo on Russian oil and products. While Brent approaching $114/b already bakes in some of that disruption to Russian energy flows, we can’t rule out a price spike if an embargo comes at the same time as an uptick in demand from  US seasonal effects and as Chinese restrictions ease. 

Indeed, a highly supportive cast of confluence should support oil prices. Although arguably, oil demand will not be immune from a cyclical downtrend that most market analysts screen as inevitable.

Given the  EU embargo on Russian oil is a “when” not an “if” question, even if Hungary fails to fall into line; it is clear that Russian exports are under pressure and will continue to be so on the back of the 26 EU nations that support the ban. 

SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.

Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.

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