- Recovery of the equity market does not favor oil.
- WTI corrects from highs in years, holds above $90.00.
Commodity prices are trading in mixed territory on Wednesday, against a backdrop of rising equity markets. Oil erased daily losses, with a barrel of WTI (futures) returning above $91.00.
The barrel bottomed out at $90.35, the low in two days and then rebounded. It is trading at $91.35, unchanged from Tuesday’s close, the day it hit a year high of $94.63. The peak was reached after the entry of Russian troops into two regions of Ukraine and after the announcement of sanctions by the US, Germany and the United Kingdom.
Fewer fears on Wednesday favored the drop in oil, which is estimated to be limited given the continuing uncertainty due to the conflict. On the other side of the scale, the return of Iranian oil to the market is a factor that can limit the rises.
Traders will continue to watch for events and announcements related to Russia and Ukraine. Also on Wednesday is the release of US oil inventory data from API.
Technical levels
Source: Fx Street
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