- WTI looks to reclaim the $100 level as fears intensify as Putin orders Zelenskyy’s execution.
- Oil prices are supported by Russia’s exclusion from the SWIF international banking system.
- The DXY dollar index moves higher amid a new wave of market uncertainty.
The West Texas Intermediate (WTI)NYMEX futures, is targeting the $100 level As the war between Russia and Ukraine escalates after Russian leader Vladimir Putin’s orders to assassinate Ukrainian President Volodymyr Zelenskyy in Kiev. To carry out the operation, the Kremlin has sent 400 mercenaries Russians.
The Moscow statement came after Western leaders announced arms aid to support Ukraine in response to the escalation of Russian military activities. Under the military aid, Australia provide lethal military equipment to Ukraine, while Canada will transfer $25 million in additional defensive military equipment that can help Ukraine counter the Russian response. For his part, the Prime Minister of JapanFumio Kishida, has said that they must move quickly to freeze Russian assets.
The exclusion of Russia from the international banking system SWIFT has set oil prices on fire. An already tight oil supply market and prospects for an extension of the ongoing conflict between Russia and Ukraine will continue to warm oil prices.
The US dollar DXY index is also moving higher amid the new wave of risk aversion.
Investors will now focus on the OPEC meeting on Wednesday, whose main agenda will be to increase the supply of oil above that stipulated to correct the imbalance between demand and supply. Until then, the bulls will remain in control and the Russia-Ukraine news will be the main drivers.
Source: Fx Street
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