Selling of risky assets puts pressure Crude oil futures hit a new low in more than a week

News on January 25, the wave of selling of risk assets continued to exert pressure, but the market was supported by escalating tensions in Ukraine and possible supply disruptions by Yemen's Houthi rebels in the United Arab Emirates interception missile attacks, and crude oil futures retreated from seven-year highs to a new low
in more than a week.

By the close, West Texas Intermediate futures for March delivery fell $1.
83, or nearly 2.
2 percent, to $83.
31 a barrel on the New York Mercantile Exchange, its lowest near-month close since Jan
.
13.
Brent crude oil prices fell $1.
62 to $86.
27 a barrel in March, the lowest level
since Jan.
14, the ICE global benchmark for March.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said Monday: "While fundamental and political factors remain positive for crude oil, these factors appear to be being overwhelmed
by market forces.
" "Crude oil has technically become overbought last week and has started to see a trading correction
," he said.
The catalyst for this appears to be the general outflow of capital from stocks and commodities into defensive havens such as bonds and gold
.
”

The benchmark stock index fell sharply ahead of the Federal Open Market Committee's decision on monetary policy on Wednesday and a series of corporate earnings reports
.

Commerzbank analyst Karstenfritsch wrote in a note: "The further escalation of the conflict in Ukraine and the worrying security situation in the Middle East justify the risk premium for oil prices
.
" Because the countries involved Russia and the UAE are important members of
OPEC+.
The expanded cartel found it difficult to reach mutually agreed production levels
anyway.
”

The State Department ordered the families of U.
S.
diplomats to leave Ukraine over the weekend amid growing fears of an imminent Russian invasion of Ukraine
.
The United States has threatened to impose sanctions
on Moscow if it invades Ukraine.
NATO is deploying additional standby forces and sending ships and aircraft
to Eastern Europe.

The United Arab Emirates said it intercepted two ballistic missiles aimed at its capital, Abu Dhabi, and that the Houthi rebels are believed to be the culprits
in the brewing conflict in the region.
Oil prices have risen
since Iran-aligned Houthis claimed responsibility for an attack on a key oil facility in Abu Dhabi that killed three people.

However, DTN senior market analyst Troy Vincent believes that the rise in oil prices in the past month is far beyond the reality of the
market.
DTN's refined product demand data showed weaker
gasoline and diesel demand in the week ended Jan.
21, he said.
This indicates that fuel stocks will continue to grow
.
Gasoline inventories have risen sharply in recent weeks, pushing U.
S.
inventories higher than they were a
year ago.

"Historically strong diesel demand remains a bright spot for the oil industry, but today's weak manufacturing PMIs, falling stock prices and high inflation levels could put this demand bright spot at increasing risk
," Vincent said.
"

Among other energy products traded on the New York Mercantile Exchange, gasoline fell 1.
8 percent to $2.
398 a gallon in February and heating oil fell 2.
4 percent to $
2.
627 a gallon in February.
Natural gas futures for February delivery settled at $4.
027/MMBtu, up 0.
7%.