Technical & Fundamental Oil Reports Specialists

Follow us

Geopolitical concerns on the mend

Published Wednesday, March 26th, 2014

Tensions between Russia and the West eased after both parties sought to draw a tentative line under the Ukrainian crisis. Barack Obama and his allies indicated that it is to hold off from implementing further “damaging” economic sanctions unless Russia went beyond the seizure of Crimea.

One must wonder if the US President is not inadvertently setting himself up for yet another of his “red lines” to be crossed. The current stalemate therefore looks to have firmly gone in favour of President Putin who has succeeded in annexing Crimea whilst only having to contend with feeble and limited sanctions.

Reducing geopolitical concerns and dovish comments from the ECB indicating that QE remains an option at its disposal helped boost demand for risk assets and saw the region’s indices post modest gains. The risk-on mood was tracked on US markets after encouraging domestic data revealed that home prices rose in January and consumer confidence climbed to a 6-year high during March. The rebound from a two-day decline saw the Dow and S&P 500 gain 0.6% and 0.4% respectively.

To read the rest of the report, please click here 

Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.