- Oil prices continue to rise and hit their highest in more than a decade.
- WTI advances more than $20 in the week and exceeds $110 easily.
Oil prices continue their ascent and hit new highs in more than a decade, the time following Russia’s invasion of Ukraine. The barrel of WTI (spot future) reached $114.50. The future (April) climbed to $115.90, the highest level since August 2008.
After peaking, the rally moderated but prices are still up more than 1% on Thursday, extending the rally. Compared to Friday, it trades $20 higher.
Foreign buyers of Russian oil continue to balk at new trades, contributing to the price rally. At the same time, more sanctions are being studied for Russia in the energy sector.
The Organization of Petroleum Exporting Countries and their allies (OPEC+) they refused to take action to cool down the current moment in the oil market. They affirmed that they will continue with the strategy agreed in July to increase production by 400,000 barrels per day for April. In the statement they expressed that the current volatility is due to geopolitical issues. Russia is a member of OPEC+ and Alexander Novak, Russian Deputy Prime Minister, is one of the organization’s highest authorities.
The focus will continue on what happens in Ukraine on Thursday and the news about it, which is dominating the oil market. The economic data, which on Thursday will be various from the US including the weekly jobless claims report, labor productivity data, the IHS Markit PMI and ISM services for February and the factory orders report, are in the background.
In the last three months, WTI has accumulated an advance of almost 70%. This puts central bankers in more trouble due to the impact on inflation and generates more and more fear of a global scenario of stagflation (zero growth with inflation).
Technical levels
Source: Fx Street
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