Oil Prices Surge As Russia Undertakes Military Operations In Ukraine
Russian Military Operations
A few hours ago, Russian President Vladimir Putin announced a special military operation in Ukraine, saying that his plans "don't include occupation of Ukrainian territory, we are not going to impose anything on anyone by force" - as per Politico's reporting of the address. [1]
The Ukrainian Presidency called this "an unjustified deceitful and cynical invasion" and reported "strikes on military and other important defense facilities". [2]
Ukrainian Foreign Minster Mr Kuleba called for "Devastating sanctions on Russia NOW", including cutting it out of the SWIFT payment system. [3]
Western countries have condemned the attack, with US President Biden calling "unprovoked and unjustified" and pointed to further sanctions against Russia. [4]
NATO Secretary General said that Russia's action "a grave breach of international law, and a serious threat to Euro-Atlantic security" and called it to cease its military action immediately. [5]
OIL Reaction
UKOIL tops $100/barrel for the first time since September 2014 and USOIL rallies to the highest level since August of that same year.
USOIl gains more than 5% at the time of writing, pushing for $100, which can open the door for 104.54 and beyond. From a technical prospective, the move is overextended, but any technical approach may be pointless at this point in time, as the move is entirely driven by the Ukranian developments.
This is a fast moving situation, with a constant stream of news, requiring caution as risk-aversion dominates markets and volatility is high.
Looking at the downside the first significant support is provided by the EMA200 and the 90.00- 88.00, but a strong catalyst will be likely needed for this level to be challenged.
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 24 Feb 2022 https://www.politico.eu/article/putin-announces-special-military-operation-in-ukraine/ | |
| Retrieved 24 Feb 2022 https://www.president.gov.ua/en/news/rosiya-rozpochala-novu-vijskovu-operaciyu-proti-nashoyi-derz-73105 | |
| Retrieved 24 Feb 2022 https://twitter.com/DmytroKuleba/status/1496711163530424324 | |
| Retrieved 24 Feb 2022 https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/23/statement-by-president-biden-on-russias-unprovoked-and-unjustified-attack-on-ukraine/ | |
| Retrieved 27 Jun 2022 https://www.nato.int/cps/en/natohq/news_192401.htm |
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