OIL: Crude Higher On Russian Unrest, But Demand Worries Likely To Resurface

Oil has started the day higher with WTI breaking through $70/bbl briefly but currently around $69.99, driven by concerns that instability in Russia may impact supply. It rose off its Friday lows with WTI finishing flat and Brent up 0.4%, despite the pullback in risk. The USD index closed 0.5% higher.

• WTI has been trading below $70 since the NY session on Thursday and ended the week down 3.4%. WTI remains in a bearish trend with support at $67.21, May 31 low. A clear break of this would open $64.41, May 4 low. Brent has been below $75 since then and fell 2.8% on the week. It is currently around $74.71.
• Oil markets have been concerned about lower demand in the face of future US rate hike comments, weaker European data, a stronger greenback and signs that OPEC+ has not cut output as much as announced. The unrest in Russia over the weekend has supported crude at the start of the week, but demand/supply concerns may drive prices lower again.