2022/03/12 (019) Technical Analysis – UKOIL

Breather In The Oil Market Price Actions,
Before The Crisis Summit In Brussels Tommorow.
Oil Prices Took A Break Today After Rising For The Past Few Day…


Before The Crisis Summit In Brussels On Wednesday: Breather In The Oil Market Price Action

Oil prices took a break on Tuesday after rising for the past few days. A barrel (159 liters) of North Sea Brent cost $114.72 in the early evening. That was 90 cents less than the day before. The price of a West Texas Intermediate (WTI) barrel fell $1.91 to $110.21. In the course of the day, however, there were strong price fluctuations on the oil market. This was reflected in the Brent price, which ranged between a daily high of $119.48 and a daily low of $112.64. The war in Ukraine remains the dominant topic. Until the morning, speculation about further sanctions against Russia had driven oil prices up sharply. The markets consider it possible that the European Union (EU) could consider an import ban on Russian oil.

Commodity expert Carsten Fritsch from Commerzbank believes that it is questionable whether the EU could actually ban imports of Russian oil. “The dependency of some EU member states on Russian oil is too high to be able to replace it without any problems in the short term,” said Fritsch.

The Commerzbank expert referred to data from the International Energy Agency (IEA). According to this, the European OECD countries imported almost four million barrels of crude oil per day from the countries of the former Soviet Union in the fourth quarter of 2021. Most of this is likely to have come from Russia.

US President Joe Biden and high-ranking representatives of the EU, NATO and G7 want to discuss further sanctions against Russia in Brussels on Wednesday. An import stop of Russian oil and gas in the EU should also be an issue. The USA had already taken this measure two weeks ago.

Oil Stocks Breathe Easy Today

The stocks of oil companies such as Shell, BP, Chevron, Occidental Petroleum or Marathon Oil, which had been among the biggest winners the day before, are initially not making any progress in this environment and are listed little changed or moderately in the red.

Our Trading Capability thus took off faster than excepted
On Tuesday, the 15th February, in the 3rd Edition, of our DEVISE 2 DAY Affiliate Financial Market Online Newsletter, i formulated a trading capability in the UKOIL – incl. with an entry price (93 USD), target price (130 USD) and or stop price (84 USD). In this case, UKOIL reached our target price. Everything i wrote was and or everything i`m still writing is no an investment recommendations. But, in the truest sense of the word, a trading capability for self-deciders. All my readers decide for themselves whether to trade something or not – regardless of my opinion. Because my DEVISE 2 DAY Affiliate Financial Market Online Newsletter is 100% commercially with 100% the best of my knowledge and beliefs. I always encouraging you to get better informed – to stay even 100% informative. So that you can better decide for yourself (not) act – buy/sell whatever you want.

Brent Crude Fails to Hold Early Gains

Brent crude futures were around $116 a barrel on Tuesday, after rising more than 2% early in the session, although prices remain elevated and market volatility is set to continue. Brent oil rallied 18% in the previous three sessions as the EU is discussing a wide ban on the purchase of Russian oil. European foreign ministers disagree on oil sanctions however, with Baltic states apparently favouring an oil ban while Germany and Italy are reluctant to move on with an oil embargo. Meanwhile, traders weigh possible disruptions to global supply due to the war in Ukraine and an attack on Saudi Arabia oil facilities by Houthi rebels.Our German Oil Reserves, Even In My Homeland, At An All-Time Low

In response to the Ukraine war, the German government released oil from the strategic reserve. Even before Russia attacked the country, German reserves were at their lowest level since 2015. For 90 days, the strategic oil reserve is intended to guarantee Germany’s supply in the event of a crisis. Even before the Ukraine war, it had reached its lowest level since 2015. On January 31, 2022, 22.6 million tons of crude oil, fuel and heating materials were stored, the Hamburg Senate announced in response to a small inquiry from the AfD parliamentary group. On March 31, 2021, stocks were still 23.3 million tons of crude oil equivalent.

A Less Volatile Oil Price Is Not To Be Expected

In the past four weeks, the price of a barrel (159 liters) of Brent has increased by almost 20 percent, amid major fluctuations. Russia is one of the largest oil producers in the world, so market players fear that a shortage of Russian supplies could cause bottlenecks on the world market. This risk and the speculation about possible supply difficulties has driven oil prices up overall. While the USA and Great Britain want to get rid of Russian crude oil, the EU has not yet taken this step because of its high dependence on Russian energy imports, even though an oil embargo has recently been discussed became.100 USD not only useful
as a stop mark for conservatives,
– for speculatives also as a short-term entry

Regardless of that, more or less USD 106, USD 114, and/or USD 124 are important support levels for bulls and resistance levels for bears.

Concentrated analysis, only on the prices, since the outbreak of war, it remains to be said that we have had prices up to almost 140 USD so far. In the two weeks that followed, it then fell back to below USD 100. I can very well imagine that bulls and bears will fight several times over the USD 100 price mark in the coming days and weeks. Depending on whether the market, i.e. all traders and or investors, perceive an end to the ongoing war.

Let’s hope not as consumers at the gas station! And stay self-determined voluntarily, with prices above 100 USD, just long – in this trading capability. And then also independently of my opinion, my comment, and or but also technical analysis.