Crude oil settled at $76.57 a barrel, up $2.65 or 3.56%. The price reached a three-month high today.

New US sanctions targeting Russian oil exports helped fuel the rise. The Biden administration imposed sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, their subsidiaries, over 180 ships, oil traders, oilfield service providers and energy officials to curb Russian revenues used to finance the war in Ukraine. Treasury Secretary Janet Yellen highlighted the move as a significant escalation of sanctions on Russian oil trade.

Sanctions, along with OPEC+ production cuts, high winter demand and supply disruptions, could further tighten global oil markets.

In addition, banning a major Chinese port from sanctioned tankers from Russia and Iran could force China to seek alternative sources of crude oil, adding pressure to global supply chains.

Technically, the price was moving above the 200-day MA at $75.14. It was the first break of a key MA since October 8, when price broke above but returned below the MA level, sending buyers back to sellers. Today, the price closes comfortably above the MA. However, a return below would once again disappoint buyers.

At the top, the price rose to test the trend line at $77.56. The high price reached $77.80, but has returned lower. The midpoint of the 50% range for 2024 is $76.44. The price closes slightly above that level (bullish).

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