Oil prices are rising due to the growing supply shortage

In view of the upcoming EU sanctions on Russian oil, a reduction in supplies around the world is expected. This factor supports oil prices, as a result of which its growth is observed.

On December 5, after the entry into force of the European Union's ban on the import of Russian oil, interruptions in global supplies are expected. In addition, in February, it is planned to block the import of oil products from Russia.

Despite the readiness for a new increase in interest rates already in early November, the Fed is getting stronger about a possible slowdown and the size of the upcoming interest rate hikes.

The strengthening of the US currency, which has had an impact on commodity prices, may be weakened due to a reduction in the rate of increase in interest rates by the Federal Reserve System. Due to this weakening, commodities denominated in dollars, including oil, become more accessible to holders of other currencies.