|

Here is what you need to know about oil prices

Oil

When it comes to oil pricing, oil traders are concerned about one thing and one thing only: the supply of oil. Traders are likely to be concerned about this element as long as the Russia-Ukraine peace negotiations fail to provide a real, peaceful settlement. It is true that the United States and Saudi Arabia are real oil supply behemoths, and they may be able to fill the void under normal conditions. Currently, it is exceedingly improbable that both nations will be able to do anything substantial to meet demand if Russian oil is embargoed.

Yesterday, oil prices retraced from the $119 price level. Today, we see them trading in positive territory, as traders consider any possibility for oil prices to retrace as a bargain-hunting opportunity. The price moved down from its highs yesterday mostly because it is improbable that the European Union would agree to an embargo on Russian oil. President Joe Biden, on the other hand, is expected to impose more penalties on Russia during his meeting with European leaders tomorrow. Biden is also in attendance for the NATO emergency meeting. That incident is also expected to increase volatility in oil prices, as sanctions are the key element that will have the biggest influence on pricing.

In short, the oil market is apprehensive about the prospect of more sanctions being imposed on Russia, the world's second-largest crude exporter, following its invasion of Ukraine, which Moscow justifies as a special operation.

Author

Naeem Aslam

Naeem Aslam

Zaye Capital Markets

Based in London, Naeem Aslam is the co-founder of CompareBroker.io and is well-known on financial TV with regular contributions on Bloomberg, CNBC, BBC, Fox Business, France24, Sky News, Al Jazeera and many other tier-one media across the globe.

More from Naeem Aslam
Share:

Editor's Picks

EUR/USD  fades below 1.1900 amid sudden USD demand

EUR/USD has quickly reversed modest intraday gains on Thursday, struggling to retain the 1.1850. The Greenback benefits from both, risk aversion, and market rumours suggesting Russia is analyising returning to the US Dollar system. 

GBP/USD sticks to the bid bias, still below 1.3700

GBP/USD is trading with decent gains around 1.3650 on Thursday. Indeed, Cable is attempting to shake off the weakness seen earlier in the week amid another choppy session for the Greenback, while a run of disappointing UK data has so far failed to derail the pair’s tentative recovery.

Gold plummets towards $4,900 as market players run into the USD

Gold plunges in the American session on Thursday, down over $150 a troy ounce in little less than an hour. Wall Street's collapse seems to be behind the ongoing US Dollar renewed strength, with the tech and the housing sectors leading the slump.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board. 

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.