Support On The S&P 500 Index Continues To Hold Despite Spike In Oil Prices

Support On The S&P 500 Index Continues To Hold Despite Spike In Oil Prices

WTI crude oil futures spiked over the weekend—trading as high as $130 per barrel—as an increasing number of companies are choosing not to buy Russian oil. Before the opening bell, oil prices had retreated to $120, which was still 3. 85% higher than the closing price on Friday. The higher oil prices are pushing equity index futures lower in premarket trading. The S&P 500 futures are down about 0. 86% as the benchmark index is testing the 4, 300 support level once again. This level has been an important level over the last few weeks and even back into July of 2021. In addition to private companies refusing to buy Russian oil, U. S. Secretary of State Antony Blinken said the United States and European allies were considering a ban on Russian oil. Previously, these groups have avoided bans on Russian commodities because of how these embargos could hurt consumers already struggling under the weight of pandemic-related inflation. Embargos on oil could be quite expensive. Analysts from Bank of America (BAC) said if Russia's 5 million barrels per day were to end, oil prices could rise to $200. JP Morgan (JPM) analysts are forecasting oil prices at $185 per barrel