Oil Prices Are Slipping Again. Expect Volatility In Crude

Mar 10, 2022

Oil Prices Are Slipping Again. Expect Volatility In Crude To Continue

Oil's attempt to recover from its worst loss in two years failed on Thursday, as crude prices fell into the red.

US benchmark West Texas Intermediate crude futures slid 1% to over $107.59 a barrel, while Brent crude futures fell 0.6% to $110.52 a barrel. Both futures had been higher earlier in the day as WTI attempted to recover from a 13% loss on Wednesday and Brent from a 13% loss—the worst one-day percentage decline since April 2020.

"The commodities market is on a knife-edge as investors speculate on the next severe diplomatic and economic steps in response to the invasion of Ukraine," noted Susannah Streeter, an analyst at broker Hargreaves Lansdown.

The sharp drop in prices on Wednesday was fueled by hope about a diplomatic solution to the Ukraine crisis. The United Arab Emirates appeared to have urged OPEC+ to raise production, leading to accelerated declines.

On Thursday, both of these causes began to wane. The Wall Street Journal stated that peace in Eastern Europe remained a pipe dream after top Russian and Ukrainian officials failed to agree on a cease-fire during negotiations in Turkey.

"The United Arab Emirates has now retracted its early OPEC+ statements, the Iran nuclear agreement has stalled, and Reuters is reporting that China's state refiners are being asked to suspend April fuel shipments," noted Jeffrey Halley, an analyst at broker Oanda. "I can only think that liquidity in the oil futures markets is currently undermined, and that technical levels are becoming more worthless."

Russia's invasion of Ukraine two weeks ago has wreaked havoc on commodities markets, sending oil prices soaring due to severe sanctions on Russia, one of the world's largest crude producers. Since the Russian invasion, WTI has increased up to 30%, and crude prices remain at their highest since 2008.

So far, strong financial sanctions against Moscow have disrupted supply chains and prompted dealers to engage in "self-sanctioning," so restricting supplies and driving up costs. A general ban on Russian petroleum by the United States and the United Kingdom might worsen the problem in the long term.

However, prices had been growing for some time long before the Ukrainian war. A barrel of petroleum cost $65.75 a year ago and would reach $75 by the end of 2021. Oil demand has roared back from the pandemic's depths against a background of constrained supply, with suppliers like OPEC+ facing obstacles to raising production.

It looks like the situation will escalate further unless hostilities cease completely and sanctions are lifted.

Subscribe Our Newsletter

Metals Haven’t Crashed This Hard Since the Great Recession
Metals Haven’t Crashed This Hard Since the Great Recession

The recent plunge in industrial metals can be traced back to the Federal Reserve's decision to raise interest rates by 75 basis points at the beginning of the month. This move was seen as a sign that the Fed was more worried about inflationary pressures than the possibility of a recession.

Stocks
Banks Want to Be a Bridge to Bitcoin. How to Invest
Banks Want to Be a Bridge to Bitcoin. How to Invest

Investors may now purchase Bitcoin using exchanges such as Coinbase or mobile applications such as PayPal. This might change when banks begin to encroach on cryptocurrency trading and custody services.

Crypto
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Constantine

Top Solana Meme Coins in 2025: Best Presales and Where to Buy
Explore the best Solana meme coins of 2025, including top presales, trends, and where to buy. Discover how to invest in the future of Solana meme coins.

discover
The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)

Constantine

The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)

In economics, the crypto market is a kind of "gray area," i.e., a classic shadow economy, because crypto unequivocally challenges the state monopoly on money issuance.

Blockchain
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.