Free Trial

Crude Hits Reverse as Russian Troops Demobilize

COMMODITIES
  • The crude futures curve has flattened aggressively this morning, with front-month contracts shedding well over $2/bbl apiece as reports continue to point toward a demobilization of troops at both the eastern and southern Ukrainian borders.
  • The reports are being seen as a sign of a de-escalation of tensions between Russia and The West, prompting markets to price out the risk of an armed conflict in the coming sessions.
  • Gold is edging lower alongside oil, with the risk premium reducing as equities stage a parallel recovery.
  • Nonetheless, Gold remains bullish inside the uptrend channel posted over the past few weeks. Gold has cleared resistance at $1853.9, Jan 25 high and today has traded above $1877.2, the Nov 16 high. This reinforces current bullish conditions and suggests scope for a stronger climb within the bull channel drawn off the Aug 9 low. The focus is on $1903.8, the Jun 8 2021 high. Short-term pullbacks are considered corrective, support is at $1821.1, Feb 11 low.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.