In its toughest move yet against Russian business, Washington sanctioned Lukoil and Rosneft, freezing assets and banning U.S. transactions. The sweeping measures, timed as oil prices dipped, signal a sharper U.S. strategy to pressure Moscow’s energy sector, Société Générale's FX analysts note.
Quant funds are driving near-term crude price moves, with CTA buying and WTI short covering likely to fuel continued upside in Brent despite minimal disruption from recent Russian sanctions, TDS' Senior Commodity Strategist Daniel Ghali notes.
Oil prices managed to settle higher yesterday, with Brent closing 0.51% up on the day. However, the scale of the surplus facing the market suggests that any upside is likely limited.