- WTI is under pressure as bears move in surrounding geopolitics.
- Oil prices are offered as EU’s proposed ban on Russian oil looks increasingly unlikely.
At $109.54, the price of US oil, or WTI, is down by some 0.8%, falling from a high of $110.50 to a low of $109.20. Meanwhile, crude oil prices have melted due to the EU’s proposed ban on Russian oil looks increasingly unlikely.
''Hungary has been holding out on the unilateral ban, asking for more time to allow it to find alternative sources. Prime Minister Viktor Orban said that progress on a deal will likely slip into next month. The EU has offered to phase in the sanctions to 2024, while Hungary has indicated it needs at least EUR770m to revamp its oil industry,'' analysts at ANZ Bank explained.
''The bloc’s leaders are scheduled to meet next week to continue to nut out a deal. In the meantime, Russian oil continues to flow. Overall shipments edged lower in the seven days to 20 May, with a total of 30 tankers loading about 24mbbls from Russian terminals. This equates to average flows of 3.44mb/d, down only 3%. This is despite EU financial sanctions that came into effect on 15 May. Nevertheless, the risk of higher prices remains,'' the analysts added.
''International Energy Agency Executive Director Fatih Birol said that 'we may see prices even going higher, becoming much more volatile and a major risk for the global economy'.''
Meanwhile, the summer months are here and so too is driving season in the US.
''The increasingly tight gasoline and distillate markets are also adding a layer of bullishness to the crude market as record refiner margins are likely to fuel elevated refiner intake this summer season,'' analysts at TD Securities said. ''In this context, despite macroeconomic angst, crude oil markets may be shaping up for another move higher this summer.''
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold gives away some gains, slips back to $2,980
Gold retraced from its earlier all-time highs above the key $3,000 mark on Friday, finding a footing around $2,980 per troy ounce. Profit-taking, rising US yields, and a shift to a risk-on environment seem to be putting the brakes on further gains for the metal.
EUR/USD remains firm and near the 1.0900 barrier
EUR/USD is finding its footing and trading comfortably in positive territory as the week wraps up, shaking off two consecutive daily pullbacks and setting its sights back on the pivotal 1.0900 mark—and beyond.
GBP/USD remains depressed, treads water in the low-1.2900s
GBP/USD is holding steady in consolidation territory after Friday’s opening bell on Wall Street, hovering in the low-1.2900 range. This resilience comes despite disappointing UK data and persistent selling pressure on the USD.
Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.
Week ahead – Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.