Oil Price Surge On U.S Sanction

Fundamental Analysis

* Sanction Shockwave: Oil prices surged to their highest levels in over three months during Monday’s opening, continuing their upward momentum amid expectations that expanded U.S. sanctions will disrupt Russian crude exports to major importers China and India. On Friday, the U.S. Treasury announced sanctions against Russian oil producers Gazprom Neft and Surgutneftegas, along with 183 vessels involved in transporting Russian oil, aiming to cut off a key revenue source for Moscow’s war efforts in Ukraine. The sanctions are expected to significantly impact Russian oil exports, prompting China and India to shift their crude purchases toward suppliers in the Middle East, Africa, and the Americas—likely driving up both oil prices and shipping costs.

Technical Analysis

*Technical Breakout: Crude oil price was traded higher following prior breakout above the previous resistance level 75.90. MACD which illustrate persistent bullish momentum signal suggest the commodity to likely extend its gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 80.00. Conversely, a potential reversal is also to be expected and the price could head back towards 75.90.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, investors will turn their attention to key U.S. inflation indicators, including the Producer Price Index (PPI), Consumer Price Index (CPI), and Retail Sales data, to assess market sentiment and potential economic trends.

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Monitoring

Stay updated on US data, global economic updates, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.