MAs Keep Oil Supported As WTI Moves Above $114, Despite No Sanctions From EU
Crude oil was one of the main reasons for the jump in prices for consumers earlier this month, as US WTI surged from around $95 to $130 almost. Major retailers seized the moment and hiked prices instantly, which were transferred to the final consumer pretty fast. The US sanction on Russian oil and other goods turned the panic mode on which was the catalyst for that surge.
But, the rest of the world didn’t follow the US, with China partnering with Russia while the EU has no choice but to keep importing Russian oil. As a result, crude oil fell below $94 pretty fast as well, which made the surge look like a dead cat bounce due to panic, especially as the 200 SMA (purple) turned into resistance on the daily chart, as shown below.
US WTI Oil Daily Chart – The 20 SMA Turns Into Support for Crude Oil
The bullish momentum has picked up again in crude oilÂ
The bullish momentum has picked up again in crude oil Today we heard Germany stand firm that they will not abandon Russian oil and gas. No big new sanctions package against Russia expected, says German government spokesperson. This isn’t anything new. The only real big step that the EU can go from here is to cast aside Russian oil and gas but that is just something that they will not be willing to do.
On the other hand, Russia is playing down any major blows to its energy sector for now. Energy minister Novak said that the Russian fuel, energy complex is operating as usual despite Western sanctions. Yet, crude oil is still moving higher and climbing above $114.
US WTI Crude Oil Live Chart
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