The price of world oil price has been slumped. It happened at the opening of early trading session this week. However, then it reversed when this news was writing at the Asian trading session.
Based on a data, there are some changes for Brent and also WTI. WTI was traded in the level of $107.33 per barrel. Meanwhile, Brent was a little bit higher where it was around $112.91 per barrel.
Now, the market participants or in this case is oil traders are waiting for the results of G7 meeting. That meeting discussed many things which are considered as the crucial value.
The examples are like non – Russia oil alternative and also the nuclear sanction. The situations like these must be understood by many traders where the right actions are really important.
The Results are not Published Yet, Market do a Wait and See
Until now, the results of that meeting was not published yet. That is why; many traders choose to wait and see the decisions which are made by the members of that meeting.
So far, their decisions are becoming the major focus this week. It is because most of that G7 members are the countries which are included in the America, European, and Canada.
So far, they just like the main actors behind an economic sanction which is given to Russia. That is why; the analysts and experts are then making several predictions about that.
They thought that there is a possibility that the meeting discussed about Russia’s oil sanction tightening. Don’t forget about the nuclear agreement between those countries as well.
G7 May Find an Option for Energy Price Increase
The factors above become a catalyst for oil price movement in a short term period. Most of the analysts predicted that G7 and the members found an option to handle the energy price increase.
They may do that by finding any alternatives to buy the non – Russia oil commodity. This action can be done by several considerations and to reach some goals at the same time.
It seems that they want to continue to sanction for Russia and that is why; the meeting discussed about that topic. However, Vivek Dhar as an expert shared his opinion.
He said that it is still unclear what the oil price will be after the G7 discussion. It seems that a solution has not been found yet, especially for solving the energy crisism
The Import Sanction on Russia Brings it’s Effect
The crisis of energy is triggered by an import sanction on Russia. Some people may thought that it will not harm the overall situation, especially the world economy growth.
Unfortunately, this prediction was wrong. In fact, the sanction like that is continued to shadowing economy and pushing the global oil stocks which are available for now.
How about the Iran nuclear sanction? The prospect to reach any agreements appears after a meeting done by EU foreign policy chief with senior Tehran officials. They try to find a solution.
Basically, it was done to re – opening an unsuccessful negotiation which has been done before. You could say that the European Union is now really active to find the non – Russia energy stock.
The Nuclear Agreement will be a Focus this Week
The EU done this action because their areas were lacking of oil stocks and gasses. That condition triggered inflation to happen there. The main focus of the marke this week can be an agreement talk about Iran nuclear.
That may bring people to a direction for increasing the oil productions in Iran. The movement of that commodity in the future will still be affected by the tight stocks and also an european union action.
It is an action to do a diversification about energy usage. Though many pressures occured lately, the analysts predicted that the oil price at least will still survive above it’s psychological level / $100 per barrel.