The price of crude oil futures for the American benchmark, the type of West Texas Intermediate (WTI) on the Nymex exchange continued its upward trend to around the price of $108.02, after having touched its high point for the last 8 years at the price of $111.50.
In the trading session, with the results of the meeting OPEC + did not increase the amount of production other than what was previously agreed. The parties from OPEC+ did not try to discuss at all to accelerate the increase in production.
The increase in the price of WTI crude oil futures was partly due to the OPEC+ organization still unwilling to move from its original plan of only increasing production by 400,000 barrels per day as predicted.
This decision from the OPEC+ side will certainly take place amid a lot of market sentiment that continues to deteriorate due to the crisis of the military conflict between the Russian-Ukrainian countries.
All investors are now increasingly concerned about the quite negative impact of the outbreak of war conflict between Russia - Ukraine which is still protracted to the risk of inflation rates and the global economic sector.
OPEC's Decision Will Affect Oil Prices
Ahead of the activities of the second round of peace talks, the Russian side is continuing to increase its military aggression against the Ukrainian state, regardless of the possibility of harsh sanctions that will be imposed by the West.
Meanwhile, for a speech from the President of the United States Joe Biden on Tuesday night, which discussed the military war conflict between Russia and Ukraine, the problematic level of price inflation, and various other domestic problems.
This will certainly weigh heavily on some hopes that a diplomatic solution can be found. The latest reports have said that for the second round of peace talks which have been scheduled for Wednesday.
For the closest “Support” area, you can wait at the $104.43 point which if it succeeds in a breakout or is passed will continue to the $103.76 price area and then continue towards $102.42
On the other hand, for the “Resistance” area, the closest oil price can wait at the price of $107.78 which if it succeeds in a breakout or is passed will continue to the $108.16 price area and then head to $109.89.
Oil prices rebounded on Friday as disruptions to Russia's oil exports as western sanctions outweighed the prospect of more Iranian supplies from a possible nuclear deal.
Oil Moves Up After Russia-Ukraine Tensions
Global markets sank while oil prices rose on signs of an escalating Russia-Ukraine conflict after reports that Ukraine's nuclear power plant, Europe's largest, caught fire after an attack by Russian troops.
Oil rose on concerns that Western sanctions against Russia over the Ukraine conflict would disrupt shipments from Russia, the world's biggest exporter of crude oil and oil products.
Russia's crude oil trading activity already appears to be frozen as buyers hesitate to make purchases because of the sanctions.
The price gains linked to actual and perceived disruptions to Russian oil exports should more than offset the price declines from a potential supply of more Iranian crude, said Commonwealth Bank of Australia analyst Vivek Dhar.
Prices swung in the $10 range on Thursday but settled lower for the first time in four sessions as investors focused on a revival of the Iran nuclear deal which is expected to boost Iran's oil exports and ease tight global supplies.
Oil prices are set to post their strongest weekly gains since mid-2020, with WTI up more than 22% and Brent at 16% after hitting their highest level in a decade this week.
Dhar Commonwealth Bank expects Brent to average $110 per barrel in the second and third quarters of this year. However, the risk is that prices will rise above our expectations in the short term. It even makes sense that Brent futures trade as high as $150.
