Oil resists to Russian supply cut

Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank says since Russia halted crude flows to Hungary, Slovakia, and Czech Republic yesterday (9th August) due to sanctions preventing payment of a transit fee. The news didn’t trigger a bull run in crude oil yesterday, though it pushed the price of American crude above the $90 mark, warning once again that upside risks prevail to the down-trending oil prices. Good news was that the US oil inventories rose by more than 2 million barrels last week, versus a decline around 400’000 barrels expected by analysts.  

Oil bulls are also quite this week, as US and Iran could finally reach a nuclear agreement, which would then unlock the Iranian oil and give a certain relief to the tight-supply market.