Russia Ukraine crisis and Crude Oil analysis, by forex forum.
Russia’s central bank more than doubled interest rates to 20% on Monday in an effort to halt the collapse of the ruble, which has gone into freefall after the West imposed tough new sanctions over the war in Ukraine.
The Bank of Russia also said on Sunday that it would resume buying gold in the domestic market as it tries to shore up its finances and find ways around sanctions on its activity.
Russia’s ruble crashed roughly 30% to a record low against the dollar on Monday morning in Europe, according to Bloomberg data. It stood at 108 rubles per dollar at 3.20 a.m ET.
On the other hand, The price of WTI crude oil futures is settling up $4.13 or 4.51% at $95.72. The high price reached $99.10. The low price extended to $94.43.
Looking at the hourly chart, the ups and downs after the gap higher saw the low price get close to its rising 100 hour moving average (blueline) at $94.09.However the price low stayed comfortably above that moving average level.
It would take a move back below the 100 hour moving average and the lower 200 hour moving average at $92.54 (and staying below those levels) to increase the bearish bias.
Moreover, President Biden came into office with an ambitious energy transition agenda foreseeing billions in spending on a buildup in wind and solar power generation capacity and the electrification of transport. However, oil demand has been on the rise both across the world and in the world’s largest consumer.
As a result, prices at the pump have been on a more or less uninterrupted rise for months, prompting President Biden to ask OPEC to boost its production over the agreed OPEC+ quota. The cartel refused to pump more, which led to the release of crude oil from the U.S. strategic petroleum reserve. This arrested the price rise for a short while, but now prices are back up again.
As of February 27, the national average stood at over $3.60 per gallon, the AAA reported. Brent crude was trading at $102.50 per barrel at the time of writing, and West Texas Intermediate was changing hands for $96.49 per barrel, both up by more than 4 percent.
Elsewhere, European stock markets have closed lower.
UK’s FTSE 100 index down 31 points, or 0.4%, at 7,458
Germany’s Dax down 106 points, or 0.7%, at 14,461
France’s CAC down 93 points, or 1.4%, at 6,658
Italy’s FTSE MiB down 357 points, or 1.4%, at 25,415
And Shell has just said it will exit all its Russian operations, including its flagship Sakhalin 2 LNG plant in which it holds a 27.5% stake and which is operated and 50% owned by Russian gas giant Gazprom. The move comes a day after BP abandoned its stake in Rosneft, which could cost it $25bn.
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