Brent crude saw some bearish correction late last week that took the prices to the ascending 20-DMA. The moving average capped profit-taking, bringing the prices back above the $100 per barrel psychological level. Furthermore, the futures advanced to fresh 2014 highs above $104 during the European trading hours on Tuesday.
The oil market has been driven higher by geological tensions surrounding Ukraine. The Russian invasion of Ukraine triggered a series of harsh sanctions against Moscow, stoking supply concerns that, in turn, pushed traders to buy oil despite the already elevated levels.
Elsewhere, two OPEC+ sources said today that the Russia-Ukraine war had not affected their deal functioning so far. Sources also added that the group would likely stick with its existing policy during the upcoming meeting. The OPEC+ policy meeting will take place on Wednesday.
Elsewhere, the Nord Stream 2 owner reportedly considers insolvency after the pipeline halt and sanctions. Of note, the pipeline did not even begin operating after the certification in Germany was put on hold amid the developments surrounding Russia and Ukraine.
On Monday, the Canadian government announced a ban on imports of crude oil from Russia in response to that country’s invasion of Ukraine. However, the decision failed to affect the market as Canada hasn't imported any crude oil from Russia for more than three years already.
Should tensions in Ukraine continue to rise in the near term, Brent crude could easily exceed the $104.60 zone and derail the $105 figure for the first time since August 2014. The futures have retreated from fresh peaks in recent trading and were trading below $103 ahead of the North American trading. Some profit-taking could push Brent back below $100, but the overall trend will stay strongly bullish anyway.