- The bad moment in the global financial markets plays against oil.
- Concerns about the demand for crude pull the price down.
- It follows the European Union’s plan to ban purchases of Russian oil.
Oil prices are falling on Tuesday, adding to Monday’s red. In this way they accumulate a decrease greater than 7% in just two days. The climate of risk aversion overshadowed the risks around the offer and especially the Russian one.
The WTI barrel price (platforms) had started the week above $108.00 and on Tuesday, during the Asian session, it fell to $99.35, the lowest since April 27. It then bounced back to the $103.00 zone but could not confirm the good timing and is trading in the $100.00 zone.
The declines are being accompanied by a significant increase in the volatility that could continue in the coming sessions and does not have a particular news behind it, but rather associated with the growing tensions in the financial markets. Added to the above was the news that Saudi Arabia reduced its sales prices for Asian customers. The European Union continues with its plans to ban the import of Russian oil but there has not yet been a clear definition in this regard.
Stocks have rebounded in recent hours and Wall Street futures point to a recovery after a crash. But at the moment this is not helping the price of a barrel to rebound, although it is helping it to remain above the $99.50 zone, which, if broken, would enable further declines.
Source: Fx Street
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