Oil buyers retreat amid geopolitical tensions

On Monday, January 24, oil trading ended in a fall. A barrel of Brent fell 0.63% to $87.10. Oil prices fell due to the strengthening of the dollar amid geopolitical tensions. Investors went into defensive assets on fears about Ukraine.

The fall in prices stopped at the level. $85.01 Despite the decline in prices, demand for oil remains high. Speculators do not allow prices to fall low, as the growth of prices may accelerate in the event of interruptions in oil supplies from Russia and the Middle East in the event of hostilities.

On Tuesday, January 25, at auction in Asia, a barrel of Brent costs 86.27. The price recovered from the level of 85.01 against the background of the growth of US stock indices and the decline of the dollar index. Market participants are also waiting for the decision of the US Federal Reserve, which brings some uncertainty.

Buyers need to keep their finger on the pulse and bring the price back to the 89 level as soon as possible. If sellers feel the weakness of buyers, then a deep correction awaits us until the situation with the coronavirus, US Federal Reserve rates and stock markets clears up.