Forex Analysis & Reviews: 03.03.2022 - Oil prices likely to...

Live Chat

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

开户

另见

交易条件

外汇分析

图表

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

如何开始交易

有用信息

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM 系统

外汇跟单系统

被动投资

OYS 帐户

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

主页

合作伙伴区域

同盟的优势

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

比赛

事件

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

论坛

我们在社交网络

外汇幽默

外汇门户

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

为什么选择我们

InstaSport

法规

公司新闻

奖项

InstaForex 明星

InstaForex 线下

Headquarters

关键文件

的社会责任

InstaForex洛普莱斯队 - 达喀尔拉力赛的正式参与者

03.03.2022 04:04 PM

Oil prices likely to skyrocket amid war in Ukraine, sanctions against Russia

Oil prices continue to rise amid the ongoing Russian invasion of Ukraine. The commodity has gained 2.5% on Thursday after reaching new highs earlier.

The price of Brent futures with delivery in May reached $115.22 at the time of writing. On Wednesday, Brent futures closed at $112.93 – the highest level since June 2014.

WTI futures with delivery in April were trading at $113.62 at the time of writing. Earlier, WTI futures reached the high of May 2011 - $110.6 per barrel.

The situation in Ukraine is directly influencing the price of oil. If situation in the country deteriorates, the price will go up rapidly.

Another factor pushing up crude oil is tensions between Russia and Western European nations. Major oil consumers are now refusing to buy oil from Russian producers. As a result, buyers have to seek other suppliers that would provide oil on similar terms.

There is a possible factor that could relieve Western supply woes – Iranian oil hitting the market. Supply from Iran would allow Western countries to reduce dependence on Russia. However, at this point, Iran is still under Western sanctions. US president Biden intends to strike a deal with the Iranian government, but it remains unclear when (or if) it would happen.

At this point, 70% of exported Russian oil cannot find any buyers. According to Energy Aspects, Russian oil producers have troubles with selling their commodity amid the current situation in Eastern Europe. Bloomberg reported that Russia's Surgutneftegaz hasn't been able to sell its commodity for the past 3 days.

Obviously, the threat of oil deficit is determining trader sentiment and price movements in the market. The International Energy Agency decided to release 60 million barrels of oil from strategic reserves, but it failed to calm down anxious traders.

Furthermore, there are reports that OPEC+ countries are planning not to increase oil production. On Wednesday, the group's member states agreed on leaving its April production quotas unchanged at 400,000 barrels a day.

"Current oil market fundamentals and the consensus on its outlook pointed to a well-balanced market, and that current volatility is not caused by changes in market fundamentals but by current geopolitical developments," the OPEC+ statement said.

With Russia's war against Ukraine in full swing, and Western sanctions against Moscow and the Russian oil sector only picking up, crude oil could reach $150 per barrel.