Four reasons why huge sell off seen in WTI during this session 🛢


1. Hope for a ceasefire between Russia and Ukraine

Negotiations are continuing and traders don't want to be Long when the news comes out that "Russia and Ukraine agree to ceasefire".

2. Russian oil is still getting to market

War or not, Russian oil is still being consumed by Europe.

3. China lockdowns

24 million people are now locked down again in China due to Covid "outbreaks"

4. Global worries

Grains from Russia may be taken from the market soon. Prices of those goods have soared and that's going to flow through. This hit to economies will sap oil demand.

Well, the oil dropping in price is good news at least.

Oil continues to fall which means fuel prices will be lower by next week.

Brent Crude (May Contract)
98.24
-8.06%

WTI Crude (April Contract)
94.27
-8.64%

mlawson71 wrote: Tue Mar 15, 2022 2:31 am Well, the oil dropping in price is good news at least.

Right

That rally gave me a fright, I admit.

DOE Reports Unexpected Surge In Crude Inventories

Brent Crude (May Contract)
98.92
-1.33%

WTI Crude (April Contract)
95.54
-0.93%

I can't imagine what it would look like if the EU implements Russian oil embargo soon.