USOIL Supported as EU Refrains from an Oil Embargo
Prospects of Fresh Sanction against Russia
Over the last few days, Western countries and Ukraine have accused Russia of civilian killings and atrocities, allegation which Russia has repeatedly denied. These has sparked calls for new sanctions, something that the US President Biden is seeking, having called Mr Putin a war criminal.
Yesterday, EU Commission President Ms von der Leyen proposed a fifth package of sanctions in the aftermath of what she called "gruesome pictures from Bucha and other areas from which Russian troops have recently left".
The plan consists of six pillars, whichinclude a ban on coal import from Russia, but the Commission refrained from proposing an embargo on oil and gas, which would be a much more contentious topic. Ms von der Leyen however, said they are working on more sanctions, including on oil imports. [2]
USOIL Analysis
The commodity runs a profitable week as it finds support today and rebounds from yesterday's decline, trying to return above the EMA200, around which it has been gyrating since late March.
Its previous visits below it have been short-lived and as such USOIL has the potential to push for a break above the descending trendline form last month's multi-year highs (at around 106.50), but it does not seem ready to challenge 116.66-93.
Despite today's upbeat mood, black gold is danger of fresh monthly lows (97.76) that would expose it to the broader 93.51-90.50 region, which has the ability to support it though and a strong catalyst would be required for a breach.
Nikos Tzabouras
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 07 Jun 2023 https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_2281 |
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