So much for lower oil prices…
Oil is up $3.60 a barrel to $106 after Europe proposed its plan to phase out Russian oil over the next six months.
“Russia provides around a quarter of EU oil imports with Germany the top buyer importing around a third of its oil last year. This development is likely to create severe headwinds for the EU economy, particularly Germany with the potential to push price levels higher and exacerbate the inflationary backdrop,” said Victoria Scholar, head of investment at Interactive Investor, as quoted by MarketWatch.com.
So, it comes as no real shock that oil majors are turning higher, including Exxon Mobil (XOM) – which, if it can break above resistance at $90 could see higher highs. Helping, earlier this week, Cowen analysts raised their price targets from $77 to $90. Even Credit Suisse raised its price target to $102 from $95 a share.
With the Russian situation still spiraling out of control, $110+ oil could be on its way – which isn’t great news ahead of the summer driving season.
Perhaps I’ll start riding my bike….