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Oil recessions after stock market crash

Oil prices fell slightly on Friday, following another fall in the New York stock market, but the trend remains strong due to tensions between the United States and Russia over the situation in Ukraine.

Prices, which had fallen more during the session, managed to regain some of the lost ground to reduce the conclusion slightly. Brent barrel price from the North Sea for delivery in March fell 0.55% to $ 87.89. In New York, a barrel of West Texas Intermediate (WTI) for delivery in March, which is the first day of use as a benchmark contract, lost 0.47% to $ 85.14.

“What you see on the stock market is driving prices”, noted Andy Lipow of Lipow Oil Associate while Wall Street closed on a new decline and the Nasdaq is clear in the correctional zone. But in essence, the oil market is backed by tensions across Ukraine. “Even if the dialogue has resumed, nothing is resolved and tensions remain”, said Andy Lipow. Concerns over the gas pipeline crossing the country could be raised if the situation in Ukraine deteriorates. “US sanctions on Russia could limit Moscow’s ability to sell oil to Europe”, said Andy Lipow.

Rise in US stocks

The small increase in U.S. oil inventories announced the day before also prevented the rise in prices since the beginning of the year. “Oil prices demand on Friday after a metric rise since the beginning of the year, following the surprising rise in American inventories.”, explained Han Tan, an analyst at Exinity. Weekly figures for oil inventories in the United States, published by the American Energy Intelligence Agency (EIA), showed a slight increase after a seven – week decline, where analysts expected another drop of 1.75 million barrels. “The question now is whether the correction will continue or whether market participants will view the lower price level as a buying opportunity”, very surprised Carsten Fritsch, an analyst at Commerzbank.

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