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The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Crude Oil stays above $100, Russia-Ukraine Peace talks proved abortive

The much essential and highly sort commodity crude oil has returned above $100 per barrel during the Asian session today after several efforts to push the price down by both the US government and IEA gradually diminished. 

 

The US government had tried earlier to push down the price of crude oil a few days back by releasing a total of 180 million barrels of oil into the market from its Strategic Petroleum Reserves (SPR) ten days ago. The International Energy Agency (IEA) further backed up this action, which released an additional 60 million barrels. This was intended to make up for the usual supply of one million barrels of oil from Russia daily into Europe. 

 

The above supply seems to have been exhausted, and more demand is now placed on the oil market.  The current high demand for oil is backed up by the easing of the two-week lockdown in China, especially in Shanghai city following the sudden outburst of the coronavirus. The Chinese government has lifted some of the lockdown bans, and China is once more engaged in high productive activities placing high demand once more for the Russian oil within the Eastern regions. 

 

Given these high demands, crude oil is currently bullish and seems to be forming strong support at $100 for its next bullish movement. 

 

On the other hand, there is currently a lower oil supply, especially as the peace talks between Russia and Ukraine failed to succeed after several efforts.  

 

The Russian President had reckoned all peace talks as having come to a dead while revealing that a seven-week offensive plan would be embarked on by Russia alongside a special operation to disarm its Western neighbors seeking to interfere in the war. This means more scarcity of oil to be created. 

 

Above all, the next direction to expect from oil for the rest of the week is highly dependent on the oil inventory report to come from the Energy Information Administration (EIA) during their meeting. The current oil supply inventory report is expected to be lower than the previous record of 2.421 million barrels supplied in February. This means oil prices will pump higher due to the low supply so far.

Last Updated: 13/04/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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