Crude oil futures settle at $78.82

The value of crude oil surged for the second consecutive day. Immediately they value settled up $2.25 or 2.94%. The catalyst? US sanction on Russian oil.

The small print:

• Crude: Crude hit a 5-month excessive, pushed by new U.S. sanctions on Russian crude, which threaten to tighten international provide.

• U.S. Sanctions: New sanctions focused Russian oil corporations (Gazprom Neft, Surgutneftgas) and their export chains, impacting 30% of Russian crude transported by way of tankers in 2024.

• Russian Crude Exports: Weekly Russian crude exports fell by 190,000 bpd to 2.88 million bpd (as of January 5), supporting increased crude costs.

• Tanker Storage Decline: Crude saved on stationary tankers dropped by four.eight% (to 50.59 million barrels) as of January 10, which is bullish for costs.

• Future Sanctions: The prospect of further sanctions on Iranian and Russian oil underneath a possible “most strain” coverage may additional restrict provide and assist costs.

Technically, the value moved above a downward sloping development line and as much as the 61.eight% of the transfer down from the April excessive at $79.07 and as much as an intraday excessive at $79.24. That was the very best stage since mid-August. The run increased has seen some revenue taking into the shut/settlement. Nevertheless, within the new buying and selling day, getting and staying above the 61.eight% retracement at $79.07 would add to the bullish bias.

Conversely if sellers do lean towards the 61.eight% retracement we may see a rotation again down towards the damaged development line space close to $77.50.

This text was written by Emma Wang at www.ubaidahsan.com.



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