USOIL Clinches New Multi-Year Highs
Geopolitical Tensions
The US Dollar got another boost from the Fed, as the central bank pointed to a March rate lift-off and conclusion of its asset purchases early in that month.
Oil prices however did not capitulate, as geopolitical tensions overshadowed aggressive expectations around the Fed's tightening path.
Fears over potential Russian invasion in Ukraine are high in the West, with the United States putting up to 8,500 troops on high alert [1] and NATO sending additional ships and fighter jets in eastern Europe [2].
On Wednesday, the United States offered a written response to Russia's concerns, which US Secretary of State Mr Blinken, said provides "a serious diplomatic path forward, should Russia choose it". [3]
As Reuters reported, Kremlin spokesman Dmitry Peskov commented that "… we cannot say that our thoughts have been taken into account or that a willingness has been shown to take our concerns into account". [4]
Eastern Europe is not the only region of concern though, as major oil producer United Arab Emirates, said at the start of the week that it had intercepted and destroyed two ballistic missiles targeting the country. [5]
USOIL
Black gold runs its sixth straight profitable week with gains of around 3.5% and breaks above $88/barel for the first time since October of 2014.
This brings the highs of that month in its crosshairs (90.76), with the next resistance located at the 93.00 area.
On the other hand, the move looks overextended and this could lead to headwinds as we draw to the end of the week. Pressure could weigh it down towards mid-85.00s, but strong catalyst would be required a sustained drop below these levels, while the downside seems well protected from 82.00 and below.
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 27 Jan 2022 https://www.defense.gov/News/Transcripts/Transcript/Article/2910061/pentagon-press-secretary-john-kirby-holds-a-press-briefing/ | |
| Retrieved 27 Jan 2022 https://www.nato.int/cps/en/natohq/news_191040.htm | |
| Retrieved 27 Jan 2022 https://www.state.gov/secretary-antony-j-blinken-at-a-press-availability-13/ | |
| Retrieved 27 Jan 2022 https://www.reuters.com/world/europe/kremlin-sees-some-room-dialogue-after-us-security-response-2022-01-27/ | |
| Retrieved 19 Apr 2026 https://www.wam.ae/en/details/1395303014136 |
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