WTI Crude Ends the Week With 3 Strong Bullish Days, As EU Considers A Ban on Russian Oil
The price of WTI crude oil futures is settling higher near the end of the week, after a New York Times article suggested the EU will is looking to phase in a ban on Russian oil. That news sent the price up on the day and has the contract trading at the highest level since the beginning of this month.
Crude oil reversed pretty fast last moth after the surge following US sanctions on Russian oil and the failure to convince other countries to place sanctions on Russian oil. Buyers had another go at the upside, but US WTI stopped at $116, which is short of the previous highs below $130.
Crude Oil Daily Chart – WTI Moving Above the 50 SMA
The trend is still not bullish in oil as long as it keeps making lower highs
According to the NY Times, European Union officials are drafting the most contested measure yet, an embargo on Russian oil products.
- EU is looking to adopt a phased in-band designed to give Germany and other countries time to arrange alternative suppliers
- Oil embargo would not be put up for negotiation among EU member states until after the final round of the French election’s
- there was a growing sense that the measure would be taken even in absence of more revelations like the atrocities in Bucha
- Any other major catastrophes that unfold will just add more impetus to the E.U. response
The price of WTI crude oil futures is trading at $103.72. That is down around -$0.54 on the day. The high price reached $104.33. The low was at $102.12. The low price for the week extended down to $93.05 on Monday before rising two a high of $104.47 yesterday. WTI crude oil for May delivery is closing at $106.95 up $2.70 or 2.59%.
So, this news and the ongoing conflict in Ukraine have left oil bullish, although Russia has plenty of room in other markets such as China, India, Russia, Southeast Asia etc. US WTI has moved above the 50 daily SMA (yellow) again which were providing support before for oil, but I’m not sure the bullish move can stretch much higher considering the facts mentioned above and adding that the world is moving toward cleaner energy.
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