G7 Countries Agree to Phase Out Russian Oil, But USOIL Drops
USOIL Analysis
The United States and the rest of the G7 countries pledged more support for Ukraine over the weekend and committed to phase out Russian energy, including oil imports . Meanwhile, Mr Putin did not announce any policy changes today, in his Victory Day speech and did not change the "special operations" status of the invasion in Ukraine. [2]
Furthermore, he accused the NATO of an "active military build-up" on the adjacent territories and spoke of "an absolutely unacceptable threat" created at his country's borders.
Market participants continue to monitor the Covid-19 situations in China, after Friday's commitment to the zero-Covid policy by the country's leadership [3]. Mainland China reported 4,260 locally transmitted (with symptoms and asymptomatic) for May 8, from 4,384 in the previous day. [4]
The pandemic and the aggressive containment measures, have an impact on the economic and trade activity of the world's second largest consumer of oil. Today's data showed that China's exports grew just 3.9% year-over-year in April, from 14.7% in the prior month.
US OIL started the week with losses amidst risk aversion, which expose it to the EMA200 (at 103.50). Daily closes below it could pause upward bias and open the door for the ascending trendline form December's lows (at around 98.80), but this may prove hard.
Despite today's retreat, the commodity comes from a three-day advance and bulls have not given up control. As such, they have not lost the ability to push back towards 111.38, but 116.66 seems distant form now.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 09 May 2022 http://en.kremlin.ru/events/president/news/68366 | |
| Retrieved 09 May 2022 https://english.www.gov.cn/news/topnews/202205/06/content_WS62747913c6d02e533532a4de.html | |
| Retrieved 19 Apr 2026 https://english.www.gov.cn/statecouncil/ministries/202205/09/content_WS6278839cc6d02e533532a725.html |
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