Analyzed by:Mr. Nhim Kosol Business Manager of Golden FX Link Capital
Early this week, Oil price traded in bullish momentum from last week prior low of $89 a barrel to Tuesday’s high of $94.88 and ending trading at session low of $91.50 a barrel as U.S. President Joe Biden appeared to avoid the harshest sanctions against Russia while Iran nuclear deal diplomacy seemed nearer to a conclusion that could provide some relief to global energy markets.
A strength of momentum which brought the oil price of this Tuesday’s high to test prior week’s high is after Russian President Vladimir Putin signed an order to send what he called “peacekeeping forces” to two breakaway areas of Ukraine. Biden announced that they will impose further sanctions on Russia by implementing sanctions on Russian sovereign debt.
The trading sentiment of oil price is still remaining unclear as the possibility of an Iranian nuclear deal. European and Russian diplomats agreed that negotiations over Iran’s nuclear program have reached the endgame. This would be the signaling that potentially relief for global energy markets if sides can agree to settle final differences.
Any restoration of Iranian’s oil productions to the global market would help ease tightness as OPEC and its allies struggle to meet its output goals which is not keeping up with rising demand.
However, Oil market has been on edge for weeks, while the swinging up and down in the standoff between flurry diplomacy of the West and Moscow. The tensions is the great indicator which add key driven to rising oil price.
In additional, White House statement published after Putin’s speech outlined that U.S. President Joe Biden had signed an executive order to respond to Putin’s actions. The statement noted that the executive order is distinct from the “swift and severe” economic measures the U.S is prepared to issue with allies and partners in response to “a further Russian invasion of Ukraine”.
The leaders of France, the U.K. and Germany, as well as President Biden, also sought in a series of calls and visits to persuade Putin to pull back from an invasion after he amassed up to 190,000 troops on Russia’s shared border with Ukraine.
Trade recommendation for this week: oil trading in range $90-$100 a barrel stop-loss at 87.5
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