As Russia is under Western sanctions, there are hopes for an intermediate pause. Moscow expressed willingness to talk with Ukraine about its surrender.
Fedspeak: While US data might be used to attract oil buyers, war news is the key.
WTI crude oils prices regained their upward momentum on Friday morning in Asia. They were up 1.16% by press time, near $94.00 per day.
Black gold reached a new high after July 2014, when geopolitical tussles with Russia and Ukraine caused oil supply worries as Moscow is the third-largest global oil producer. The quotes fell to $100.00 on mixed chatters, suggesting a temporary halt to the war and the recent rebound from $91.00.
Russia’s invasion in Ukraine caused a panic and pushed oil prices higher as President Vladimir Putin’s forces climbed past Chernobyl. President Zelenskyy of Ukraine signed a decree for general mobilization.
While the West imposed heavy sanctions against Russia, it showed willingness to provide military support for Ukraine. To trigger Thursday’s pullback, Russia made similar comments to the West, including “Moscow is willing negotiate the terms for Ukraine’s surrender.” Chatters also claimed that Ukraine President Zelenskyy stated they must discuss ceasefire negotiations with Russia.
The latest rebound in WTI crude oil prices may have been influenced by CNN’s news, which signals a Russian bombardment of Kyiv at 01:00 GMT.
These plays are reflected in the drop in S&P 500 Futures of 0.50%, while the US 10-year Treasury yields struggle to find new clues at 1.97%.
Oil traders should pay attention to geopolitical headlines coming out of Russia and Ukraine. Fedspeak may also offer additional directives, including US Core PCE Inflation data as well as Durable Goods Orders.
Analyse technique
WTI bulls are challenged by repeated failures to provide a daily close above an ascending resistance line starting July 2021 at $95.00.
