CRUDE OIL price jumps 3% as US imposes sanctions on leading Russian oil suppliers

WTI oil opened with gap higher and rose around 3% during Asian / mid-European session on Thursday, lifted by the latest decision of President Trump to impose sanctions on two major Russian oil suppliers.

The US decision comes at the same time with new package of EU sanctions on Russia and decision to stop buying Russian natural gas.

This also comes as a part of larger offensive action by Trump’s administration, which aims to pressure world’s biggest buyers to stop purchasing Russian crude oil. According to some media reports, the campaign has so far showed limited results as India has changed its rhetoric and said that they will review their plans for buying oil from Russia.

The latest coordinated action by EU and the US accelerated recovery and lifted oil price by more than $2 today, improving technical picture on daily chart, as today’s acceleration marked over 50% retracement of $66.40/$55.96 bear-leg and momentum indicator broke into positive territory, setting stage for possible further recovery.

Bulls pressure immediate resistances at $62.26/41 (55DMA / Fibo 61.8%) guarding more significant base of daily Ichimoku cloud (spanned between $63.32 and $65.97), where bulls may face stronger headwinds and increased risk of recovery stall.

The notion is supported by the fact that oil price holds within larger downtrend and current recovery, unless registers a clear break above daily cloud, would mark a healthy correction before bears regain control.

Res: 62.26; 62.42; 62.90; 63.32
Sup: 61.19; 60.38; 60.00; 59.03