Article Hero

Near seven-year high for oil prices

1644843835.png
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 prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

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.