Jump to content

Oil prices reach $100, gas and aluminium prices unsteady due to Ukraine and Russia conflict


Recommended Posts

The catastrophic impact on the energy and commodity markets will start to unfold as Russia is a major producer of oil, gas, aluminium, and wheat.

Russia is a major producer of gas, oil, aluminium, and wheat.
Source: Bloomberg

Energy prices are under the spotlight this week as the Ukraine and Russia crisis escalates each day.

Oil prices skyrocketed after Russian President Vladimir Putin signed an order to send “peacekeeping forces” to the two breakaway areas of Ukraine, a signal viewed as the first move for a Ukraine invasion. The catastrophic impact on the energy and commodity market will start to unfold as Russia is a major producer of oil, gas, aluminium, and wheat.

Brent Crude: New 7-year-high

Crude oil prices have rallied to near $100 a barrel, and US’s sanctions on Russian oil exports will only exacerbate the supply issue and push the prices higher.

  • Brent Crude was up 3% on Tuesday with a new record of $96.93. Both short-term and mid-term momentum is poised to a higher outlook as 20 and 50 days MA has painted a steep straight line pointing north
  • Current support is at $94.09. Next support can be found from 20 days, moving at an average of $91.83
  • Weekly charts show that the long-term trend line will continue since April 2020
  • For buyers waiting for an entry point once the price pulls back, the RSI dictator suggest to keep close eye on the level around 41.

Brent Crude Daily Chart

Brent crude daily chartSource: IG
Brent Crude Weekly ChartSource: IG

Natural Gas: 10-month long uptrend remain valid

Natural gas prices pulled back to its 100 days moving average after three straight days’ rise to the resistance level at 4670. However, long-term uptrend looks more likely to stay as the pathway since April 2021 from the weekly chart remain valid.

Next support can be found at 4335 before the 50 days moving average come to the fore. The level of 4670 will exercise as pressure again once the price of Natural gas bounced back.

Natural Gas Daily Chart

Natural Gas Daily ChartSource: IG

Natural Gas Weekly Chart

Natural Gas Weekly ChartSource: IG

Aluminium: 11% up this month

The price of Aluminium did not stop breaking records this week. The new record for the key construction commodity was created on Tuesday at 3379.6, which is already 11% higher than its price on the 1st of February.

The recent high from February 10th, of 3334 will turn to be the current support while 3301 is another notable level. In terms of near-term targets, the upper boundary of the moving tunnel in between $3431-$3443 should be seen in the coming days.

Aluminium Daily Chart

Aluminum Daily ChartSource: IG

Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.

Hebe Chen | Market Analyst, Australia
25 February 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 30/09/23 13:08
  • Posts

    • The crypto market appears to be showing signs of recovery, with significant improvements in the Sharpe Ratios of Bitcoin, BGB, and Ethereum, according to an article published on Friday.  The Sharpe Ratio, a measure used to understand the return of an investment compared to its risk, has seen a notable increase for both cryptocurrencies. Bitcoin's Sharpe Ratio has risen from -2.4 to 0.68, while Ethereum and BGB have also experienced a similar uptrend. This change signifies higher returns at lower risk, which is expected to attract more investors to the crypto market. In addition to the improved Sharpe Ratios, increased network activity and trading volume as shown on CEXs like Bitget, Binance, and a few DEXs are suggesting a healthier market state. The current trading prices of Bitcoin, reflect this overall positive market sentiment. As of Friday, Bitcoin was trading at $27,069.73, BGB at $0.454 and Ethereum at $1,677.89. These developments are significant as they indicate reduced risk in the crypto market. The increase in the Sharpe Ratios for Bitcoin, BGB, and Ethereum suggests that these cryptocurrencies are becoming less risky investments, which could potentially lead to an influx of new investors into the market.  Could this rise in Sharpe Ratios coupled with increased network activity and trading volume point towards a recovering and less risky crypto market?
    • Hi, That's great, thank you very much. Very helpful! Many thanks.
    • Texas Instruments Inc., Elliott Wave Technical Analysis Texas Instruments Inc., (TXN:NASDAQ): Daily Chart, 29 September 23 TXN Stock Market Analysis: We have been moving lower as expected from the previous forecast. Looking for continuation lower as there is an incomplete bullish sequence. Looking for extension lower in wave {iii}. Downside target stands below wave (W). TXN Elliott Wave Count: Wave {iii} of C. TXN Technical Indicators: Below al averages.   TXN Trading Strategy: Looking for shorts on the way down.   TradingLounge Analyst: Alessio Barretta Source : Tradinglounge.com get trial here!       Texas Instruments Inc., TXN: 4-hour Chart, 29 September 23 Texas Instruments Inc., Elliott Wave Technical Analysis TXN Stock Market Analysis: As we are getting an overlapping structure in what could be a wave {iii} there is a high chance we will see an acceleration lower to then see a series of fours and fives.   TXN Elliott Wave count:  Wave (iii) of {iii}. TXN Technical Indicators: 20EMA as resistance. TXN Trading Strategy: Looking for shorts on the way down.
  • Create New...