Oil price can take a breather

The price-increasing effects that are currently at play have now been discounted in the price. The threat of war between Russia and Ukraine is still in the air, but an invasion does not appear to be imminent in the short term. In any case, Russia will not attack during the Olympic Games, that is the general idea. This week, attempts were again made to calm the threat in diplomatic relations. For example, French President Emanuel Macron had a meeting with his counterpart Vladimir Putin.

Also the last week Opec+'s decision not to scale up production further is included in the price. It is therefore not surprising that the price has remained stuck around $90 per barrel this week.

Market remains bullish 
This does not alter the fact that sentiment on the oil market appears bullish for the time being. This is partly related to the approaching 'end' of the corona pandemic. Although the infection numbers are still sky-high in many countries, many governments are deciding to phase out the measures. The relatively mild omikron variant offers space for this. This development means that there will probably be more travel in the near future, according to analysts at Bank of America. They think that high petrol prices are not necessarily an obstacle, as many people want to go out after two years of lockdown. The bank therefore assumes that oil prices will continue to rise for the time being.

$100 limit per barrel
Many analysts believe that passing the $100 per barrel mark is just a matter of time. Especially when tensions in Eastern Europe continue to flare up. Of course, the other way around also applies. When the threat of war fades into the background, the oil price slows down significantly. Speculators are currently watching the oil market for a while, because many price-raising effects are already discounted in the price. This explains the quiet week that the oil market has had.