Oil rises as tight market looks to Russian-Western diplomacy

Brent crude futures

BRENT CRUDE OIL  was trading  up  0.54%  at  $91.96

Oil prices rose on Monday as fresh diplomatic efforts to resolve the Ukraine crisis provided some relief from supply concerns that have kept oil prices near $100 a barrel.

Brent crude futures were up 41 cents, or 0.4%, at $93.95 a barrel at 1225 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.5%, to $91.56 a barrel.

French President Emmanuel Macron said on Monday that U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to a summit over Ukraine, but the Kremlin said there were no immediate plans for a meeting.

U.S. markets will be closed on Monday for the Presidents Day holiday.

“Energy could be clear collateral damage of a kinetic conflict between Russia and Ukraine,” said Helima Croft, global head of commodity strategy at RBC.

European Commission President Ursula von der Leyen said Russia would be cut off from international financial markets and denied access to major exports needed to modernise its economy if it invaded Ukraine.

Meanwhile, ministers of Arab oil-producing countries said on Sunday that OPEC+ should stick to its current agreement to add 400,000 barrels per day (bpd) of oil output each month, rejecting calls to pump more to ease pressure on prices.

Price gains have also been limited by the possibility of more than 1 million bpd of Iranian crude returning to the market.

Iranian foreign ministry spokesperson Saeed Khatibzadeh said “significant progress” had been made in talks to revive Iran’s 2015 nuclear agreement on Monday after a senior European Union official said on Friday that a deal was “very, very close”.

RSI Stood at 54.616, 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: 91.90, TARGET:-92.60, STOP LOSS:- 91.60.

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