WTI looks well supported around $69.00 as Moscow vs. Mercenary clash fuels supply risks

• The oil price is looking to recover from $69.00 amid fears of instability in Russia.
• Investors believe that Russia's thing is for the short-term and spot fundamentals are still not supportive.
• Fears of recessions are elevating as central banks are restricting monetary policy further.

West Texas Intermediate (WTI), futures on NYMEX, have sensed buying interest near $69.00 in the European session. A recovery in the oil price seems favored as the clash between Moscow and the Mercenary group in Russia has stemmed the risk of political instability.

On the weekend, mutiny, led by the Wagner mercenary group and its leader Yevgeny Prigozhin, was called off quickly after negotiation with Belarusian President Alexander Lukashenko, as reported by Newswires. This has fueled supply concerns as instability in the Russian economy is expected to disrupt the current demand-supply mechanism.

Analysts at Goldman Sachs said markets could price a moderately higher probability of domestic volatility in Russia leading to supply disruptions. Giant investment banking firm further added that the impact could be limited because spot fundamentals have not changed.

Spot fundamentals that have not changed in oil are weak demand outlook due to accelerating fears of a global recession. Central banks in large economies are consistently hiking interest rates as the battle against stubborn inflation is getting more complicated.

Last week, the Bank of England (BoE) was forced to raise interest rates by 50 basis points (bps) to 5% as the core Consumer Price Index (CPI) printed a fresh high of 7.1%. UK administration and BoE policymakers are not feeling comfortable due to current inflationary pressures in the United Kingdom.