First published: 5.29 a.m. EST
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Despite Vladimir Putin’s decision to partially mobilize troops to Ukraine, WTI crude oil closed in the red at $83.06, a loss of 1.42%.
The move, which could see about 300,000 reservists being called into action, comes after Ukraine’s stunning advance which allowed it to recapture areas from Russia.
Putin remarked that the move is not a bluff and the development adds to worries of an escalating conflict and a tighter energy supply.
On the other side of the spectrum, concerns about lower demand for oil also persist over weakening demand and global recession worries.
The announcement of the annexation of four regions from Ukraine by Russia (which will be voted upon later this week) also adds to the geopolitical uncertainties and the volatility in oil.
In the meantime, the U.S. stockpile of crude rose by ~1.03 million barrels in the week ended September 16.
Here are some stocks that could be affected by this news:
- Energy Select Sector SPDR Fund (XLE)
- United States Oil Fund LP (USO)
- ProShares Ultra Bloomberg Crude Oil (UCO)
- Exxon Mobil (XOM)
- Chevron (CVX)
- Occidental Petroleum (OXY)
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