WTI Crude Surges 2.7% Amid Sanction Fears and OPEC+ Buzz – $63.74 Resistance Next?

WTI crude oil futures jumped sharply to $61.40 per barrel on Wednesday, bouncing back from the previous session’s losses. This rebound comes as markets prepare for a potential wave of new U.S. sanctions against Russia, with President Trump expressing fresh frustration over slow progress in Ukraine peace talks. Traders are already factoring in tighter global supply if these new restrictions, expected later this week, come into play.

Adding to the bullish tone, the U.S. recently barred Chevron from exporting Venezuelan oil, pushing up demand for supplies from the Middle East. Over in Europe, trade tensions continue as the EU scrutinizes major U.S. investments following Trump’s decision to ease back on tariff threats. Now, attention is turning to the upcoming OPEC+ meeting, where producers might debate a possible output increase of around 411,000 barrels per day.

Technical Outlook: Poised for a Break?

On the charts, WTI crude (CFDs) is hovering just below $61.30, caught between a potential breakout and the risk of a deeper pullback. A descending trendline from earlier highs continues to act as resistance, while the 50-period EMA at $61.29 is holding as a dynamic barrier. The key resistance level to watch is $61.86, which has been tested but not broken recently.

• Support Levels: $60.83, $60.09, $59.30

• Resistance Levels: $61.86, $62.69, $63.74

The MACD is hinting at indecision, with its lines converging and no clear signal in sight. Meanwhile, recent candlesticks—including spinning tops and small-bodied candles—reflect market hesitation. Still, a strong break above $61.86 could trigger a short-term rally, setting sights on $62.69 and $63.74. On the other hand, a drop below $60.09 might open the door to $59.30 or even $58.38.

Key Takeaways for Traders

The next few days will be critical for WTI crude as geopolitical tensions and shifting supply dynamics fuel volatility. Here’s what traders should keep an eye on:

• Watch for volume surges confirming a breakout above $61.86.

• Keep an eye on the descending trendline—breaking it could open the floodgates to rapid gains.

• Look for confirming signals from MACD and candlestick patterns like bullish engulfing or three white soldiers.

• Stay tuned for updates from OPEC+ and any announcements on U.S. sanctions.

With the oil market on high alert, flexibility is essential. Quick, news-driven moves could reshape the landscape, so staying nimble will be key to navigating the next chapter for WTI crude.