The bulls are leaving the ring

Oil prices have well and truly eased off their rally while Russia continues to bring in the big bucks for its supplies.

Oil prices have well and truly eased off their rally while Russia continues to bring in the big bucks for its supplies.

  • Crude oil futures fell just under 10% last week for their worst 5-day session since April this year, settling at $80.11 per barrel and now down nearly 30% in the last 6 months after seeing a stunning rally earlier this year – the change in sentiment all comes down to demand and supply, as per usual.
  • Essentially, supply is up and demand is down, putting pressure on prices. Concerns are mounting about weakening fuel demand in China, which only a few days after lessening its quarantine rules reported its first covid death in six months over the weekend – it’s a major importer of oil and more covid restrictions will mean less oil demand.
  • That’s outweighing the potential for Russian supply to drop next month on tighter EU sanctions. So far, even with existing sanctions, total purchases of Russian energy (including oil products) totalled $7.7bn in October, bringing its total haul since invading Ukraine to $59.5bn.

TradingView

Source: https://www.tradingview.com/news/tradingview:87ec63538:0/

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