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.