WTI renews multi-day high past-$90.00 as tensions mount over Russia-Ukraine war
- WTI rises to a fresh high since September 2014.
- Markets remain panicked as Western leaders signal immediate fears of Russia invasion of Ukraine, Putting terms it ‘provocative speculation'.
- Rebound in yields, stock futures test buyers amid a quiet session, light calendar.
WTI crude oil prices remain firmer around $93.00, up 0.85% intraday after refreshing the multi-day peak during Monday’s Asian session. That said, the black gold rose to the fresh high since September 2021 while flashing a $93.17 level before a few minutes.
Comments from US President Joe Biden raised concerns of an imminent military attack by Russia over Ukraine. Not only the US but the UK and Eurozone leaders also flashed worrisome signals for the much-debated geopolitical event.
It’s worth noting, however, that Russian President Vladimir Putin termed any such claims as ‘provocative speculation’, per AFP News. However, market players seemed to not believe in Putin’s comments as Bloomberg said, “Standoff with Russia over Ukraine heads into most tense week yet.”
Amid these plays, the US 10-year Treasury yields lick their wounds around 1.95%, after shedding over 11 basis points (bps) the previous day. Further, the S&P 500 Futures print mild gains by the press time.
It’s worth noting that the recent indecision over the Fed’s rate hike and cautious optimism also underpins oil prices. Additionally, the OPEC+ members’ inability to match the production hike targets amid geopolitical concerns also favors the oil buyers.
Looking forward, WTI crude oil prices are likely depending upon heading concerning Russia invasion and Fed-rate-hike with weekly inventories and FOMC minutes will be the key data/events to watch for intermediate moves.
Technical analysis
An upward sloping trend line from July 2021, near $93.60, guards the immediate upside of WTI crude oil prices amid overbought RSI conditions. The pullback moves, however, remain elusive until staying beyond a six-week-old support line near $89.70.