Today's trading session brings a continuation of declines in oil prices reacting to recession fears, obstacles to the European Union ban on Russian oil and the spread of the COVID-19 virus in China caused sell-offs in financial markets.
-
In Europe, the resolution of the EU project to ban Russian oil imports continues to be hindered by Hungary, which is reluctant to consider requests from the European establishment. Yesterday, the head of Hungarian diplomacy, Mr. Peter Szijjarto announced that restricting oil supplies from Russia would create a problem for Hungary's economy, and the European Commission is at this point reluctant to present an alternative plan.
-
Oil prices also fell following the failure of the military mobilization scenario to materialize or Vladimir Putin's announcement of an escalation of the conflict during the Victory Day celebrations in Russia
-
Additional factors driving crude down are also China, which continues to fight the spread of the COVID-19 virus within its borders. Media outlets have reported that Shanghai is extending lockdowns and banning people from leaving their homes in many areas of the city.
-
Downward pressure on crude is also provided by general sentiment in international markets, which are increasingly concerned about a global recession. Central banks are continuing to raise interest rates, thus offsetting the stimulus of economies reeling from the Covid-19 pandemic.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOIL.WTI continues to moves lower on Tuesday. Sellers managed even to briefly push the price below the psychological $100.00 level. Nevertheless, given the current negative market sentiment, a further downward impulse towards support at $97.90 cannot be ruled out. This level is marked with previous price reactions and lower limit of the 1:1 structure. On the other hand, if buyers regain control, the nearest resistance to watch lies at $103.62. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
