Sanctions On Russian Energy
The European Union and the United Kingdom however, refrained from an outright ban on energy imports, with the Old Continent in particular, being highly dependent on oil and gas imports from Russia.
The European Commission unveiled a plan that could reduce EU demand for Russian gas by two thirds before the end of the year and make it independent from Russian fossil fuels well before 2030 , whereas the UK said it will phase out the import of Russian oil during the course of the year .
Russian President Putin responded by signing Executive Order to restrict the export of certain products and (or) commodities , although no specific list had been disclosed at the time of writing.
OPEC has so far not acted on the increased volatility in the oil market and the surge in prices, resisting calls for increased production. The organization along with allies such as Russia, a group know as OPEC+, stack to its production plan earlier this month and decided to add 400K barrels/day of oil in April, as it has been doing since August. .
Yesterday however, the ambassador of the United Arab Emirates in Washington, Yousef Al Otaiba, put out a statement saying "We favor production increases and will be encouraging OPEC to consider higher production levels".
We don't know if this was a deliberate move to start preparing markets for a potential shift in OPEC+ policy, but in any case, it seesms to have contributed to Wednesday's slump in oil prices.
USOIL posted its worst day since the pandemic collapse yesterday, but finds support during today's European session, after defending the 38.2% Fibonacci of the last leg up – from December's low to Tuesday's nearly 14-year highs.
As such, it has the ability to push back above 119.93-112.00, although fresh impetus is needed for new highs (129.46).
Despite today's upbeat mood, there is risk for another test of the 38.2% Fibonacci, but closes below the EMA200 are required to shift near-term bias to the downside.
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.
Retrieved 10 Mar 2022 https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1511
Retrieved 10 Mar 2022 https://www.gov.uk/government/news/uk-to-phase-out-russian-oil-imports
Retrieved 10 Mar 2022 http://en.kremlin.ru/events/president/news/67948
Retrieved 27 Jun 2022 https://www.opec.org/opec_web/en/press_room/6830.htm