Crude oil futures are on track to sustain the headway made in the prior two sessions and rebound further from 4- month lows, as the United States ramped up efforts to restrict flows of cheap Russian oil in energy markets.
Washington’s renewed sanctions package now includes Lukoil and Rosneft, two of Russia’s largest energy players and a number of Russian-based subsidiaries that are tied to them, mirroring the sanctions initiative taken by the UK late last week, which serves as an indirect from of pressure-measure to end the war in Ukraine. Ukraine’s President Zelensky rejoiced, hailing the decisions.
“Given President Putin’s refusal to end this senseless war, the Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine” noted the US Treasury Secretary Bessent, who also encouraged the hegemon’s allies to join the efforts, adhering to the sanctions, hoping to create a united front against its perceived adversary of the West.
The European Commission jointed the party as well, earlier today, adopting a new package of sanctions (the 19th) against Russia’s energy infrastructure, tightening its transaction bans. “EU will also impose a full transaction ban on two major Russian oil companies, Rosneft PJSC and Gazpromneft, and sanction 118 additional so-called shadow fleet vessels, which have enabled Russia to evade previous measures” Bloomberg reported.
The alliance is walking on tight rope however, as their actions may be easily perceived as threatening from Moscow, which explicitly vowed to completely run over Ukraine, spurring fears for severe escalation of tensions, disrupting flows of crude in an oversupplied market.
Technical Analysis
WTI Chart – Crude extends rebound after US and EU announced new sanctions of Russian energy producers
Resistance: 61.50 (R1), 65.60 (R2), 70.40 (R3)
Support: 58.00 (S1), 55.15 (S2), 52.00 (S3)
