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Daily market commentary: WTI crude oil prices reach a multi-year maximum as concerns grow over potential disruption of energy supplies from Russia
WTI crude oil prices reached a fresh multi-year maximum during early Tuesday trading, as investor concerns grow over the potential disruption of energy supplies from Russia. It is unlikely that the West will include Russian oil and gas exports in the package of sanctions being deployed, however Moscow would be likely to retaliate to such sanctions by restricting energy exports to Europe. Such a scenario will aggravate the ongoing supply side issues that have been supporting the price of the barrel and would be likely to push them beyond the $100 mark for the first time since July 2014.
Ricardo Evangelista – Senior analyst, ActivTrades
European Shares
European shares climbed on Tuesday as most benchmarks register corrective bullish moves following Monday’s massive sell-off on equity markets. Ukraine-Russia tensions continue to simmer and dent market sentiment this week, especially after President Putin ordered military forces to what he recognized as “separatist areas”, leading the current conflict to another dimension. With geopolitical and economic uncertainty on the rise, it is no surprise to see investors seeking safer assets such as treasuries, precious metals and energy while reducing their exposure to equities. This trend is likely to continue if relations between Russia and the rest of Nato countries worsen. However, the significant equity sell-off is turning share markets more affordable and attractive and, with that in mind, any positive developments, potentially in the shape of an economic or energy deal between Russia, Ukraine and the rest of Nato, could boost risk appetite and spark the beginning of a sharp bullish correction.
Technically speaking, the Stoxx-50 index has registered bullish price action since its rebound over the 3,900-pts support level. The next targets can be located towards 4,000-pts, 4,030-pts and 4,065-pts by extension while a breakout of the 3,900-pts support zone could quickly lead prices around 3,855-pts and further.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
