Worries that these events could trigger further sanctions against Russia, and subsequently see oil flows curtailed, have had a destabilising effect. This has helped support Brent, and it has again been pushed above the $108 level and the 50-, 100- & 200-day moving averages. The markets have found themselves yo-yoing around these levels as hopes are raised then dashed regarding a peaceful solution.
Over on the other side of the Atlantic markets have anticipated that US oil reserves have decreased, which has also added to demand issues. OPEC member Saudi Arabia has been quick to advise the markets that it is well-placed to meet any excess demand. News that Libya’s oil pipelines should be up and running by early next week may also relieve the pressure.
The current picture points suggests that the Brent crude price could once again rise to $110, but since it has failed to reach this level on several previous occasions we should be wary of its ability to move any higher.