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​Oil Up Strongly As US Bans Russian Imports

  • Crude oil prices have increased sharply today as the US and UK actioned its ban on Russian oil imports, with the US turning to Venezuela to help fill the gap in supply.
  • The time it will take US producers to ramp up production sees price gains heavily concentrated in front-dated contracts.
  • WTI is +4.2% at $124.6, down from an earlier high of $129.44. Resistance remains yesterday's overnight high of $130.50 after which it could open $132.75 (3.618 proj of the Aug - Oct - Dec 2021 price swing).
  • The most active strikes in the Apr22 contract have been $130/bbl calls, followed by $140/bbl calls.
  • Brent is +4.4% at $128.6, down from a high of $133.15. As with WTI, resistance remains yesterday's high of $139.1.
  • Gold sees another very strong day, up 2.1% at $2039.6 having touched highs of $2070.44 and in the process clearing two resistance levels, with the higher $2050.0 (Aug 10, 2020). That potentially opens major resistance eyed at $2075.5 (Aug 7, 2020 high).
  • This was despite surprisingly little reaction from Poland announcing it is ready to transfer all its MiG-29 jets to the US airbase at Rammstein, a potential escalation trigger.
  • Russia will restrict some raw material exports but we await details.

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