- Impact of conflict in Ukraine continues to drive oil prices.
- WTI barrel continued to rally after topping $100 on Tuesday.
The Petroleum continues to soar on Wednesday and hit new highs in years. Both WTI and Brent are up more than 6% so far this day. In the last hours they slightly moderated the rise. The barrel of WTI (futures) operates in the area of ​​$107.00, with high volatility.
The US oil price hit $110.00 before moderating rise, the highest levels since 2013. The refusal of consumers to buy from Russian producers has been added to the previous rally in crude oil. Analysts have doubts about the offer’s ability to counter such actions.
The spike in oil prices has led several countries to announce new releases of reserves, but this could be insufficient according to analysts and this is what the market seems to be judging. It also poses a great challenge to central banks, in their struggle to control inflation.
In the Eurozone today a new record in inflation was known. This new rise in oil only adds more upward pressure for prices. Part of the reactions of the central banks to this new context can begin to be known today with the testimony of Jerome Powell, the president of the Federal Reserve before a committee of the US Congress.
Traders will continue to monitor production and booking news. There will also be employment data from the US The volatility in oil prices is expected to remain at high levels.
Technical levels
Source: Fx Street
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