The bear during the middle ages was often used to represent Russian culture, geography, and politics. The bear is generally not aggressive, however, when cornered or threatened he will attack to protect himself. Russia yet again proved to the western world that it will have a tactical defense when threatened.
When the predator is unsure of the move and does small steps, the prey will notice and will defend itself or simply run away.
On the 23rd of March of the year 2022, Russian President Vladimir Putin announced that he will price the exported Russian oil in Ruble for all unfriendly countries.
This decision comes as no surprise after the U.S. administration decided to ban all oil imports from Russia as a method to launch their economic war as a response to the attack.
Since then the European Union was hinting at also banning Russian oil in their areas, however, those threats did not take action, since the EU is largely dependent on Russian Oil.
Adding to that, any alternative source will take a lot of time to be implemented especially, since passages are not yet developed.
As a direct effect of the Russian change in oil pricing, we witnessed sudden hikes in the oil prices and in specific the WTI crude oil, whereby, it increased approximately by $8/barrel since our last oil-related article written on the 22nf of March.
WTI is currently (Figure 1) trending upwards forming a well-shaped upward channel with consecutive higher highs and higher lows formations, also respecting the Demand and Supply Zones in a sequential manner.
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Figure 1: Source TradingView WTI crude Oil
What is also supporting the WTI is the 50SMA, which supports the price in a surfing manner, however as previously mentioned in the previous article, the prices formed a strong supply zone between the prices of $115 and $113. Currently, the resistance zone is being tested for the 3rd time for the past 2 days.
This decision will also have a great effect on the Ruble, as unfriendly countries will be forced to demand it in exchange for the Oil prices.
All of this makes us ask a specific question. Was Russia already getting ready to fight the possible sanctions before the attack?
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