OIL PRICE FORECAST: WTI DROPS BELOW $93 PER BARREL, FOCUSING ON THE UKRAINE-RUSSIA TENSIONS
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Author: Amar – Technical Analyst

Oil prices fell this morning as investors took profits from yesterday’s rally to seven-year highs and as global stock markets slumped, although losses were capped by fears that Russia might invade Ukraine and disrupt supplies. WTI eases to $92.80, down 0.45% from previously, whereby in doing so, the black gold portrays a pullback from an ascending resistance line from July 2021. With that said, during the New York session yesterday, the energy benchmark refreshed a multi-day high while poking $94 level. WTI may witness further profit-booking around multi-day tops.

Russia is one of the world’s largest oil and gas producers and fears it could invade Ukraine have driven a rally in oil towards $100 per barrel, a level not seen since 2014. Investors scooped up profits from Monday’s rally though they were hesitant to take fresh short positions due to rising tensions in Eastern Europe. Oil markets may see a real correction if the Iran-U.S. nuclear deal is agreed upon or global equities tumble further amid worries over inflation and tighter monetary policy by central banks.

Ukrainian President Volodymyr Zelenskiy called on Ukrainians to fly the country’s flags from buildings and sing the national anthem in unison on Feb. 16, a date that some Western media have cited as a possible start of a Russian invasion. Several Western media organizations have quoted the US and other officials citing the date as to when Russian forces would be ready for an attack. Meanwhile, International Energy Agency (IEA) chief urged OPEC+, the Organization of the Petroleum Exporting Countries and allied producers, to close the gap between words and its actions.