The oil prices increase because it lacks of stocks and the political tension. That political tension happened in the east Europe and Middle East. 

The situation like that placed the prices in their biggest monthly increase track in almost a year. The Brent crude oil ended the day at $91.21 which mean it raised by 1.31%.

Meanwhile, the United States West Texas Intermediate stable at 1.5% higher where it reached $88.15 per barrel. Benchmark then created the highest level since the October 2014 

That was happened on Friday where each were $91.70 and $88.84. It means that the commodity was also having their increase for six weeks in a row. 

Europe Needs to Diversifying It’s Energy Stock

The Benchmark raise was the highest one since February 2021. Above the whole concerns about the stocks limitation due to the Ukraine crisis, the oil prices were pushed higher. 

That opinion was stayed by an analyst in the Commerzbank Carsten Fritsch. The chief of NATO said on Monday that Europe needs to diversifying it’s energy stocks right now. 

It is especially when the United Kingdom warned them that it is really possible to Russia for attacking Ukraine. The markets are also vigilant due to the middle east situation. 

That was after the UAE said that they have been intercepting the ballistic rudal shot by the Houthi Yaman. It was when that country was giving a banquet the president of Israel, Isaac Herzog. 

The Bullish Sentiment can be Dominating this Week

For the price of oil, the bullish sentiment has a possibility to dominate the market this week. It was inline with what the analysts predicted, but must be in a special condition. 

It means that there must be a possibility that OPEC+ will maintain their staged production increase policies which are existing now. For the information, OPEC+ have increased their productions target. 

That is done every month since August where the increase is around 400,000 barrel per day. In the February 2, 2022 meeting, OPEC+ may still with their oil production target plan for March. 

That point is now in the air since some trusted sources said about that. That is why; the market participants are not that worry about the overall situation in the market. 

Meanwhile, the Gold Prices Decline

Elsewhere, the prices of gold declined for the forth session in a row. That was also stayed as the biggest monthly decline since the last September due to a reason. 

The biggest reason Was the stronger US dollar ahead of the major central bank meeting. That makes gold is now more expensive than before for the currency holders in the market. 

The spot of gold slipped down by 0.2 percent in $1.788,41 per ounce. Before, it was moved neat $1,779.20 in the previous session based on the data and it was the lowest since 16 of December.

The gold in United States also increased by 0.1% in $1.788,20. Meanwhile, the Federal reserve has a plan to increase their interest rate in March this year. 

A Basic Reason of why March Is Chosen to Increase the Rate 

The Fed decided to choose March for increasing their rate based on an assumption that most of the economy will stay away from omicron as the latest variant of the coronavirus. 

It means that there is a strong possibility that economy will continue to grow in a healthy clip. Although gold is thought as a protector for inflation, the raising interest rate will increase the chance. 

It is especially a chance to hold the gold bar which doesn’t give any feed back. The sellers are now finding the wisest decision from the Australia, uk, and European central bank meeting. 

The top list relation in Asia saw so many strong demands for the gold last week ahead of the Chinese new year momeant. Meanwhile, the Indian buyers decided to delay their purchase.