Chart of the day - OIL.WTI (17.02.2022)

12:03 pm 17 February 2022

Oil prices took a hit in the late evening yesterday on news that Iranian nuclear deal is just days away. The United States, China and France were positive that a deal can be reached soon and said that now it all depends on Iran. Return of Iranian crude to the global markets could significantly boost global oil supply. Oil prices plunged around 5% over the course of 5 hours in response to those news. However, the situation took a U-turn this morning with news of clashes in the eastern part of Ukraine. As the situation is getting more tense, concerns over security of Russian oil supplies and exports grow. Majority of yesterday's losses were recovered already and WTI has once again reached the $91 per barrel area.

Taking a look at the WTI chart (OIL.WTI) at the H4 interval, we can see that yesterday's drop was halted at an important support zone. The zone ranging near the $88.88 handle is marked with previous price reaction as well as the lower limit of a local market geometry. According to Overbalance methodology, as long as the price sits above $88.88, the main trend remains upward. Situation on Ukraine should be watched closely by oil traders and is likely to have a bigger short-term impact on prices than reaching of the Iranian nuclear deal.

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.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.