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| Oil Prices Soar Above $70 Per Barrel On Positive Sentiment and Geopolitical Tensions |
Oil prices have surged above $70 per barrel, as Western Texas Intermediate (WTI), the US crude oil benchmark, advanced sharply due to positive sentiment and geopolitical tensions. The halt to oil exports from Iraq Kurdistan and Russian President Vladimir Putin’s announcement to deploy tactical nuclear weapons in Belarus to intimidate the West have also contributed to the increase in oil prices. In addition, a confidence vote in the banking system and reports of US authorities considering expanding emergency lending facilities have cheered investors.
However, WTI’s course has reversed after a dragonfly doji emerged on its daily chart after Friday’s close. This has led oil traders to threaten to push prices to the 20-day EMA at $72.10. Meanwhile, an arbitrage case won by Baghdad has halted 450K bpd exports from Kurdistan to Turkey due to Kurdistan’s need for Iraq’s consent to ship oil. Russia’s Deputy Prime minister Alexander Novak has also commented that Moscow is close to achieving its 500K crude output, to about 9.5 million bpd. NATO has described Putin’s comments as “dangerous and irresponsible”, and Ukraine has called for a UN Security Council meeting.
