Since the beginning of the military operation, the pricing of oil has some risks. After the decline that occurred on March 8, when the possibility of peace was first mentioned, Putin's statements that there could be positive developments keep the prices at the current level. Expectations such as Iranian oil, demand phenomenon and supply pumping from oil reserves are other observed phenomena. However, the fact that the prices were higher than a month ago has not changed. The US statements that Russia asks for military support from China and Russia's removal from the preferred commercial partnership status and being subject to sanctions in this area make the issue unclear.
WTI oil price movement in the last 1 month… Source: Bloomberg
Therefore, the oil market is pricing in uncertainty and it is not clear where the prices will go. Having peace today will bring prices down quickly. The embargo and its continuing demand to be diverted in a more scarce supply market will keep the pricing momentum fast. In this environment, it is unlikely that the US will be able to persuade oil producers such as Saudi Arabia to cut prices. If Russian pipelines will not be used, shipping costs will come into play in routing Middle East or North American sources. In today's world, everything is money after all.
Meanwhile, TASS has released the statement of the Minister of Energy of Azerbaijan. Accordingly, Azerbaijan will increase gas flow to Europe via Turkey.
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