Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Crude oil prices hit 14-year high on new Russia sanctions risk

Crude oil prices hit a new 14-year high as fighting in Ukraine broadened; markets eye harsher western sanctions as Russia races to gain leverage and risk appetite evaporates across markets, ceasefire talks to resume today.

Source: Bloomberg

Crude oil prices roared higher at the weekly trading open as the deepening crisis in Ukraine stoked speculation about another round of still-harsher Western sanctions against Russia. As the fighting spreads to engulf more of the civilian population, headlines foreshadowing a Western ban of Russian energy exports have emerged.

Dramatic backwardation now shows demand for the soonest-possible crude deliveries outstripping those due just a month later by the largest gap on record since at least 1984. That speaks to acute concerns about supply disruption. Russia is the second-largest global oil producer, accounting for over 13 percent of output.

WTI crude oil CL1-CL2 futures spread chart Source: TradingView

Risk appetite soured across financial markets against this backdrop. Australia’s ASX 200 stock market benchmark fell at the open and futures tracking key equity averages in Japan and Hong Kong indicate steep losses when those bourses come online. Bellwether S&P 500 futures – a global sentiment proxy – are down over 1.3 percent.

The Swedish Krona, Euro and Swiss Franc saw outsized losses in the G10 FX space, seemingly reflecting their proximity to the crisis. The oil-sensitive Norwegian Krone held up a bit better. The Australian and New Zealand Dollars rose with broader commodity prices as the turmoil warns of shortages. Gold hit an 18-month high.

Russia, Ukraine to resume talks as Moscow looks for leverage

Moscow’s decision to broaden the assault in recent days – even braving a risky and globally-condemned shootout amid the capture of Ukraine’s largest nuclear power plant – may mark a final push to gain leverage after series of early setbacks and miscalculations. This is as biting sanctions speed up the clock to ceasefire negotiations.

As noted earlier, the terms of mutually acceptable disengagement may see Russia to pull back to its pre-war borders in exchange for Ukraine and Western powers agreeing to discuss the status of breakaway Luhansk and Donetsk regions in eastern Ukraine “later”, at least for now. Talks are due to resume today.

Crude oil technical analysis

WTI crude oil prices gapped sharply higher after closing above long-standing resistance in the 107.68-114.83 area last week. The 78.6% Fibonacci extension at 121.65 is now being tested. Securing a firm foothold above this threshold may set the stage to challenge the 100% level at 137.77 next.

Reversing back below 114.83 may cool upward momentum to some extent but overtaking 107.68 on the downside seems like a prerequisite for substantive downside follow-through.

Crude oil chart Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. This information Advice given in this article is general in nature and is not intended to influence any person’s decisions about investing or financial products. ​

​The material on this page does not contain a record of IG’s trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps
Find out more

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off
Log in now

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform
Log in now

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Take advantage

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.