Russian invasion on Ukraine has sent European stock markets and global equity futures into freefall. Meanwhile, oil prices skyrocketed on concerns that energy supplies may be in danger. Front-month Brent contract (for March 2022 delivery) jumped above $103 per barrel. However, this series is no longer liquid and majority of trading is centered on April and May delivery contracts. Price of a barrel of Brent for April 2022 delivery is nearing $103 as well. Price of a barrel of Brent for May 2022 delivery (this series is available on xStation under ticker OIL) broke above $100 briefly this morning. This is the first time since 2014 when Brent price jumped above $100 per barrel.
Oil market is expected to remain volatilite for as long as tensions in the Eastern Europe persist. As Putin went forward with invading Ukraine, now the world's attention is on the response of the West. Leaders of the Western countries express solidarity with Ukraine and said that unprecedented sanctions against Russia will be announced later today. While this is a Russia-Ukraine conflict, markets are also eager to see whether other superpowers will take sides. The so-called "West" took the side of Ukraine. China has said that it will not supply any side with weapons and that it is up to Russia how it secures its interest. Ukraine has reportedly asked India for intervention but no response was offered yet.
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Create account Try a demo Download mobile app Download mobile appTaking a look at Brent chart (OIL), we can see that the price is rallying today. OIL is trading almost 6% higher on the day. Price broke above the 161.8% exterior retracement of the downward correction launched in Q4 2021 and is now trading in the $100 per barrel area.
Source: xStation5
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