Higher In Asia On Ukraine Standoff

WTI is +$2.50 (vs. Friday settlement) and Brent is +$1.50 (vs. Monday settlement). The benchmarks have pulled back from session highs after the early Asia shift higher, which was driven by the latest developments in the Russia-Ukraine situation.

• While western leaders (i.e. U.S., the U.K., and the EU) have announced the preparation of sanctions against Russia, a U.S. official told RTRS that Putin’s latest move will not trigger a broader sanctions package as Russia was simply moving into “territory that they’ve already occupied” (likely easing concerns among market participants re: a further escalation between various parties to the situation).
• To recap, both benchmarks moved higher on Monday after Russian President Putin announced Russia’s recognition of the sovereignty of Ukrainian separatist regions Donetsk and Luhansk, while ordering Russian troops into the territories for “peacekeeping operations”.
• On the technical front, Brent has broken through the bull trigger at $96.78 (Feb 14 high), and now sees resistance at $98.94 (2.764 projection of the Dec 2-9-20 price swing). Resistance for WTI remains unchanged at $95.82 (Feb 14 high).