Towards a weekly jump of 10% oil

With stabilizing trends in the area of ​​120 dollars, oil is moving in the current trading, while both contracts are on track to complete their first uptrend week in the last three.

In particular, the European Brent sees the May contract to increase marginally by 0.19% and its price to be $ 119.26 the barrel, while the US WTI in May remains virtually unchanged at $ 112.32 the barrel.

On a weekly basis, however, after three consecutive five-day falls in which prices even entered a bear market area last Friday, this year they took the rise again and Brent is moving towards completion with a jump 10%as well as the WTI leading to + 7%.

The stagnation in the Russia-Ukraine talks has ruled out a political compromise on a ceasefire, and as fighting continues unabated, concerns about a reduction in supply due to sanctions in Moscow, the world’s second-largest exporter of crude oil, are growing.

As SPI Asset Management’s Steven Ines points out, “it’s difficult to take a short position in oil as stocks continue to decline and we are sure we will have more supply shocks in the future.”

Characteristic of the strong volatility of the oil market is that the Intercontinental Exchange increased the margin calls for Brent to 19% for the May contract, to the third rise for this year, making crude more expensive in trading.

It is recalled that margin calls increase when markets are volatile, requiring investors to deposit more money as a guarantee that they will meet their obligations.

For its part, the US discussed with its allies a possible coordinated further release of security supplies, as Energy Secretary Jennifer Granholm announced on Thursday.

At the same time, according to a Reuters report citing sources familiar with the matter, the United States is expected to announce today an agreement to supply Europe with more liquefied natural gas (LNG) this year and next year.