Crude oil settled at $76.57 a barrel, up $2.65 or 3.56%. The price today reached a 3 month high.
New US sanctions targeting Russian oil exports helped fuel the rise. The Biden administration imposed sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, their subsidiaries, more than 180 vessels, oil traders, oilfield service providers, and energy officials to restrict the flow of into Russia that was used to finance the war in Ukraine. Treasury Secretary Janet Yellen confirmed the move as a significant increase in sanctions on Russia's oil trade.
The sanctions, along with OPEC+ production cuts, high winter demand, and supply disruptions, could further tighten global oil markets.
In addition, a major Chinese port ban on licensed tankers from Russia and Iran could lead China to seek alternative sources of crude, putting pressure on global supply chains.
Technically, the price moved above the daily 200 MA at $75.14. That was the first break of the main MA since October 8, when the price broke above, but closed back below the MA level turning buyers back into sellers. Today, the price is higher than the MA. However, a move back down would disappoint the customers again.
On the upside, the price moved up to test a trend line at $77.56. The price reached a high of $77.80 but turned back lower. The middle 50% of the range for 2024 comes in at $76.44. The price closes just above that level (bullish).
Buyers have more control.
