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Daily market commentary: WTI crude oil prices remain above $120 per barrel, following the ban of Russian oil by the USA and UK
WTI crude oil prices remained supported above $120 per barrel during early Wednesday trading, following the announcement of the banning of imports of Russian oil and other related products by the USA and UK. The move by the allies feeds into a wider dynamic that has seen a reduction in the demand for Russian energy products as traders hold back, fearing potential repercussions for dealing with Moscow. This progressive withdrawal of Russian oil from the markets is aggravating ongoing global supply issues which, alongside some speculative trading, is likely to maintain elevated oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Gold
Gold prices remain firmly supported above $2,000 dollars per ounce during early Wednesday trading, Demand for the precious metal increased as the geopolitical risk grew in Eastern Europe, with its price spiking on Tuesday and coming close to the all-time high reached in August 2020. The performance of gold will remain strongly linked to the demand for safe-haven assets and to how investors react to ongoing events in Ukraine and the stance of the parties involved, as the price is unlikely to drop significantly until a major de-escalation is achieved.
European shares extended gains on Wednesday, edging higher as market sentiment improved, boosted by a batch of positive news this morning. The technical rebound continues towards all EU benchmarks as bull traders seem to have taken control of the trend following the latest bottom registered on Monday. This very short-term price action has accelerated this morning after investors welcomed a batch of positive data (CPI & PPI) from China overnight, as well as the ceasefire offered by President Putin to let civilians flee on Wednesday. That trend may continue further today, with even higher market volatility expected as investors wait for key US figures, with the Crude Oil inventories and JOLTs data for January due in the afternoon. However, even if today’s price action could spark opportunities for intraday traders, longer term investors aren’t expecting anything really directional on EU stocks prior to tomorrow’s ECB briefing after its monetary policy meeting, as well as the EU leaders summit.
Pierre Veyret– Technical analyst, ActivTrades
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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.
