2022/03/23 (020) Technical Analysis – UKOIL

 Oil Price Market Price Action Rally Slows Recovery.
Statements By Vladimir Putin On Wednesday Depressed Mood.
Brent Crude Oil Market Price Action Bounces Back Above 120 USD.


Oil Price Market Price Rally Slows Recovery

After significant gains the day before, Wall Street extended its losses in the last two hours of trading on Wednesday. The leading US index, the Dow Jones, slipped by more than 300 points at times. The reason for this is once again significantly rising oil prices, which are also fueling fears of further rising inflation.

Statements by Russian President Vladimir Putin on Wednesday depressed mood, according to which “enemy states”, which he includes in addition to Germany and other EU countries as well as the USA, should in future pay for their energy supplies from Russia in rubles.
Meanwhile, a summit meeting of NATO, the Group of Seven important industrialized countries (G7) and the European Union (EU) is casting its shadow in Brussels tomorrow, Thursday. The talks are also said to be about new economic sanctions against Russia and the question of possible import bans on Russian crude oil. The US has already decided that it will no longer import Russian oil.

Oil Prices Market Action Are Rising Again Significantly

In this mixed situation, oil prices are also rising sharply again. A barrel (159 liters) of the North Sea Brent cost 121.05 US dollars. That was $5.57 more than the day before. The price of a barrel of the US West Texas Intermediate (WTI) variety rose by $4.91 to $114.18.

In the USA in particular, this is raising concerns about negative effects on economic development and further increases in inflation rates – which put a damper on the recent recovery tendencies on the US stock market. The Dow Jones, the market-wide S&P 500 and the tech-heavy Nasdaq each lost around one percent on Wednesday evening..

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 Bounces Back Above $120

Brent crude futures rose more than 5% to above $121 per barrel, after Russia pledged that the storm in the Black Sea damaged one of the world’s biggest oil pipelines, disrupting exports from Russia and Kazakhstan and possible wiping out 1 million bpd from markets. Prices were already rising after industry data showed the US crude inventories unexpectedly fell last week, highlighting a tight global market reeling from international sanctions against Russian oil exports. The latest data from the EIA Petroleum Status Report showed US crude stocks fell by 2.508 million barrels last week, after a 4.345 million rise in the previous period and defying market expectations for an increase. On top of that, markets remained on edge over the prospect of further sanctions as US President Joe Biden is scheduled to meet with European leaders on Thursday to discuss Russia’s invasion of Ukraine.As a result of the Russian invasion of Ukraine, more and more countries around the world are turning away from supplies of resources from Russia – this applies above all to gas and oil. So that the supply of the important fossil fuel does not run out, other countries must now fill the gap. Germany has so far obtained most of its imported oil from Russia, but a reorientation is imminent. There are currently around 108 billion barrels of oil reserves in Russia, as the Statista chart with data from BP shows. About six percent of the world’s oil reserves lie dormant under the soil of the Russian Federation. Despite the economic isolation, there is no need to worry about fuel shortages. The amount of oil stored in Russia ranks sixth in the world. The world’s largest reserves are in Venezuela – there were around 304 billion barrels there in 2020 (18 percent of global reserves). Saudi Arabia (298 billion barrels) owns a similar amount of “black gold”, followed by Canada (168 billion barrels), Iran (158 billion barrels) and Iraq (145 billion barrels).

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.