The future of crude affected by geopolitical tensions

Posted on February 8, 2022 We start another week with oil at highs due to geopolitical tensions and a storm affecting the central and northwestern regions of the United States, which could cause a lack of supplies. The advance in the nuclear negotiations with Iran affected the price of oil before a possible return to the export of crude oil. The maximum tension in relation to the conflict between Russia and Ukraine does not cease, yesterday the president of the United States Joe Biden met with the German chancellor to discuss the crisis in Ukraine and fight jointly with NATO. Geopolitical tensions continue between Russia and Ukraine, the latter backed by NATO, while various diplomatic meetings were held yesterday on both sides of the Atlantic to try to slow down the conflict. The United States affirmed that in case of invasion the Russian gas pipeline Nord Stream 2 will not receive permits for its operation, in addition to preparing a strategic cooperation package that guarantees the supply of gas in Europe. On the macro data side, in the US we were witnessing the publication of very positive data on the US labor market on Friday, which further encouraged a tightening of the Fed’s monetary policy. Non-farm payrolls in January positively surprised the market with data of 467,000 jobs, much higher than analysts’ expectations (150,000) and despite not having reached the figure for the previous month (510,000). The unemployment rate in January rose slightly by 4% compared to the estimated figure and to the figure for the previous month (3.9% both). This week in the US, the focus is on the CPI data to be published on Thursday, due to its implications for the actions that the FED may take in this regard. The TNote rose to 1.95% (+3bp) and the US consumer debt figure rose 5.9%, revealing the good evolution of the economy and the recovery of consumption. During today in the United States will be published the data of the trade balance and the Redbook index. In the foreign exchange market, during yesterday’s Monday, the price of the EUR/USD pair moved in a range between 1.1415 and 1.1469, to end up closing the session at levels of 1.1442. The interest rate on the 10-year US bond closed practically flat at 1.92%. INFORMATIONTitleThe future of crude affected by geopolitical tensionsDescriptionWe start another week with oil at highs due to geopolitical tensions and a storm affecting the central and northwestern regions of the United States, which could cause a lack of supplies. Author GLOBALCAJA

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