- Sharp fall in crude oil prices after the announcement of the withdrawal of some Russian troops from the border area.
- WTI futures fall from levels above $93.00 to the $90.00 zone.
- Attention continues on Russia and data from the US is coming.
Oil prices are falling sharply while equity markets are rising at the same time, on the back of Russia’s announcement that some troops are returning to their bases. WTI falls almost 4%, in the worst day in months.
What’s good for stocks is bad for oil
The announcement of Russia pushed up markets throughout the world. In Europe, the main markets rose by an average of 1.20%, while futures on Wall Street climbed up to 2.15%. This good climate in the markets also generated a release of government bonds from both the US and the large Europeans, generating a rise in yields.
The Petroleum was negatively affected as it had made headway in the face of escalating tensions between Russia and Ukraine. The lower possibility of a conflict reduces the potential for oil supply problems in the region.
Monday, the price of a barrel of WTI had the highest closing since September 2014, despite finishing in the area of ​​93.00$, far from the peak reached at $94.00. In the European session on Tuesday, WTI plummeted from $92.90 to fall to $90.00, the lowest since Friday. At the moment, the $90.00 zone is offering support as the price remains under pressure.
Technical levels
Source: Fx Street
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