Oil Down, Set for Weekly Loss as Supply Concerns Continue

Brent Crude

Brent Crude was trading  up  0.38%  at  $109.75

Oil was down on Friday morning in Asia, set for their biggest weekly drops since November 2021 but clawing back some losses. Market volatility also continued over concerns about more sanctions on Russian oil versus efforts to increase supply via other major producers.

Brent oil futures fell 0.73% to $108.53 by 12:39 AM ET (5:39 AM GMT) after falling 1.6% during the previous session. WTI futures was down 0.30% to $105.70 after a 2.5% drop on Thursday.

Brent futures were set for a weekly tumble of about 7% after hitting a 14-year high of $139.13, while WTI futures were headed for a drop of around 8% after hitting a high of $130.50.

The black liquid is wrapping up a volatile week, with the U.S. and U.K. looking to ban Russian oil supplies earlier in the week, then floating potential supply additions from Iran, Venezuela and the United Arab Emirates, and fighting intensifying in the Russian invasion of Ukraine.

However, oil eased after it looked like the European Union, which is heavily reliant on Russian supplies, would not join the U.S. and U.K.’s embargo.

Russia is the second largest crude exporter globally behind Saudi Arabia, and “the oil market is not prepared to face such a supply shock as inventories stand at a multi-year low level,” ANZ Research analysts said in a report.

RSI Stood at 56.989, the current price is trading Above  the Moving Averages  20 & 50. So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-BRENT CRUDE Buy: 109.20, TARGET:-110.20, STOP LOSS:- 108.70

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