Crude oil prices closed yesterday neartheir 7-year highs. What do you think are the main price drivers prevailing forthis surge on crude oil prices?
GeopoliticalSituation
Crude oil prices closed yesterday neartheir 7-year highs, as an attack on an oil site in Abu Dhabi further strainedan already tense market. The concern about the deterioration of the situationbetween Ukraine and Russia, which has been occurring for several days, has beenovertaken by the attack on the infrastructures of the United Arab Emirates. OnMonday, an attack probably committed by drones blew up three tank trucks nearthe Abu Dhabi National Oil Company (ADNOC)’s reservoirs.
WTI Crude Oil (CLH22) Futures (March contract, daily chart)
Asyou can see, there is currently a lot going on in the energy markets tomaintain a high level of volatility. In particular, some fundamental driversand news of supply disruptions and geopolitical tensions often push pricessignificantly higher. However, it is also interesting to note that they do notseem to be falling back to their previous level once the issues are resolved orwhen the tensions de-escalate.
PS: Don’t forget to switch to theMarch 2022 contract (CLH22) for WTI Crude Oil.
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Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
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