The Russian Oil Cap Becomes Somehow Meaningless Due To The Falling Oil Prices

Equities extend the downside recovery, following the failure to clear an important year-to-date resistance last week, which was the S&P500’s year-to-date descending channel top at around the 4080 level. technology stocks were sold faster than the others, but energy stocks suffered on falling oil prices.

Oil

The barrel of Brent crude trades below the $80 mark for the first time since the very beginning of this year, and the barrel of American crude came a couple of cents below the late November dip. Even the API data – which showed a 6.4-mio-barrel drop in US oil inventories couldn’t bring the oil bulls in.

What’s good about the falling oil prices is that the Russian oil cap becomes somehow meaningless at $60pb. But the fact that the G7, the EU and Australia agreed to cap the price of Russian oil gave a strong message to the rest of the oil producers: they could do the same with OPEC and that would be a big blow for oil prices in the long run.
Elsewhere, TSM will invest $40bn in two Arizona plants, and Europeans are frustrated to see the US chipmakers get so much help that they are preparing to do the same!

Watch the full episode to find out more!

• 0:00 Intro
• 0:34 Equities extend downside correction
• 1:30 Oil slumps on higher EIA forecast for US oil production
• 3:52 A ‘buyers’ league’ would be a disaster for OPEC
• 5:35 US banks’ CEOs see gloom in 2023
• 6:52 Governments back chip investments
• 9:10 Hawkish BoC hike may not boost Loonie

Ipek Ozkardeskaya

Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.

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