Market

The price of oil rolled back a week in two days

Material author:

The week began with a steady decline in oil prices. In two days they fell by 8.8%. Panic about anti-Russian sanctions subsided and calmed the market.

Judging by the charts of futures for Brent crude, now the energy carrier has no potential for further growth. The corridor from $97.5 to $100 per barrel is now acting as a support zone. A fall in prices below this level is unlikely, but if negative factors continue to act on quotes, the price of oil may overcome this level in the near future.

The procedure for agreeing an embargo on the purchase of Russian oil in the European Commission is going with complications. Hungary, which asks for more refusal time, does not make concessions to other countries. In addition, the European Union has to give up positions in the field of transportation of Russian oil on European tankers. Greece, which owns more than 25% of all active tankers, insists on the continuation of the traffic. An alternative would be to opt out of insurance for these ships.

The United States, meanwhile, reports on the growth of oil reserves. The Department of Energy estimates that U.S. storage facilities have been filled above their February level. They added another 1.6 million barrels last week.

As of today, Brent oil futures are trading at $104 per barrel.

Leave a Reply

Your email address will not be published.