- summary:
- The price of oil increased on Friday, as the market weighs the implications of a possible escalation of Russia’s conflict of Ukraine and weak US dollars.
The price of crude oil increased in the New York session on Friday, as the basics of the weak dollar and the rise in the geopolitical premium provided the payment. The price of Benchmark Benchmark rose by 1.6 % and was circulated at $ 67.48 a barrel, while Brent rose by 1.5 % and traded at $ 70.47 at the time of writing this report.
Weak American economy and supporting geopolitical risks oil prices
The American economy printed soft job data, weakening the position of the US dollar. Non -farm salaries appeared in February 151 km, less than the expected number 159 kg. Meanwhile, the January numbers were reviewed down by 18 thousand to find 125 thousand. The unemployment rate increased to 4.1 %, up from 4.0 % and above similar expectations by analysts.
These figures indicate a weakness in the American economy, which is likely to extend the last US dollar. Crude oil is designed in US dollars, and the weaker green back usually increases the demand for the commodity. This development is likely to put the price of oil on the growth path in the coming days.
Elsewhere, Russia had strikes against Ukrainian energy and gas infrastructure on Friday, threatening a possible escalation. US President Donald Trump threatened to increase sanctions against oil -producing Russia, adding the geopolitical risk allowance to the commodity. Another disruption, along with the Russian supply of the commodity, may increase oil prices.
Oil prices predict
The momentum on the price of WTI oil calls for more upward trend above $ 66.85. The first resistance commodity is likely to face $ 68.00. It will break a stronger momentum above this level and potentially test $ 69.00.
Instead, the price momentum can turn to the downside if the procedure drops to less than $ 66.85. However, the first support is likely 65.80 dollars. The collapse under this level will nullify the bullish direction. In addition, it can lead to a stronger declining momentum for a $ 65.00 test.
