- The price of oil returns to levels prior to the Russian invasion.
- WTI fails to hold above $94.00, with a bearish intraday bias.
- Announcements of use of reserves and pressure for higher production slow the rise.
The Oil prices have retreated significantly after Thursday’s peak, after the Russian invasion of Ukraine began. The price of barrel of WTI (West Texas Intermediate Crude Oil Cash) operates in the area of daily lows at $91.90, after reaching $99.99 the previous day.
WTI traded just below $95.00 on Friday, before turning around and falling below $92.00. The very short-term bias is negative, which could change if there is a rally above $94.30.
Thursday’s jump started to moderate and the declines intensified with US announcements to use more of the reserve strategies. In other countries there were similar announcements. Despite this, the volatility in oil prices is expected to remain high and be closely followed due to its impact on inflation.
“The US is also likely to increase pressure for OPEC to increase production more aggressively. These requests were largely ignored last time, and it is hard to see a change in OPEC’s thinking. However, we should have more clarity on this next week when OPEC+ meets on March 2,” the ING analysts explained.
The economic calendar shows several US economic reports ahead and the Baker Hughes oil rig count. However, the focus will continue to be on the Russian invasion of Ukraine and the aftermath.
Technical levels
Source: Fx Street
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