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Near seven-year high for oil prices

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 February 2022
Russia-Ukraine tensions pushed oil prices up

The oil prices steadied after reaching their highest point in more than seven years due to Russia’s possible invasion of Ukraine. Such an event could trigger US and European sanctions that would disrupt exports from one of the world’s major producers.

Brent oil hit $94.33/barrel, a price of $93.11 a barrel. Previously, it had hovered near $94.94/barrel – the loftiest since September 2014. Analysts believe that the market is currently very sensitive to any news about potential supply disruptions. The inventories are low and spare capacity at oil producers is expected to fall further.

Moreover, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) struggled to boost the output, despite the monthly pledges to increase production by 400,000 barrels per day until March. This added to the ongoing tensions.

Also, the US Dollar rose along with the Yen and Swiss Franc as investors turned to safe-haven assets. According to US officials, Russia could make a surprise move and create a pretext for an attack. Russia denied such plans.

The Dollar Index rose 0.4% to 96.328 – the highest reading since February 1.

Sources: investing.com, reuters.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.