President Trump has announced potential sanctions on Russian oil that may be implemented within ten days. This includes threatened tariffs on nations continuing their purchase of Russian oil, with no expectation of these tariffs being low.<\/p>\n
The news has led to an increase in crude oil prices. As a result, crude oil has moved above its 200-day moving average of $67.97.<\/p>\n
The announcement by Trump caused prices to peak at an intraday high of $69.41, nearly reaching the resistance level seen on July 14, which was at $69.61.<\/p>\n
By the end of trading, crude oil was priced at $69.21, reflecting a rise of $2.50 or 3.75%.<\/p>\n
Crude oil is pushing higher as we see renewed threats of tighter sanctions on Russian energy exports. Prices are reacting to headlines about the EU considering stricter enforcement of its price cap mechanism. The market is getting nervous about potential supply disruptions heading into the high-demand winter season.<\/p>\n
We’ve seen West Texas Intermediate (WTI) crude break through the key $85 per barrel level, settling near $85.15 today. This move clears the 50-day moving average, a bullish technical signal for the short term. Russian seaborne exports have hovered around 3.4 million barrels per day, and any new measures could put that volume at risk.<\/p>\n
For derivative traders, this means we should anticipate higher volatility in the coming weeks. The CBOE Crude Oil Volatility Index (OVX) has already jumped to 38, signaling increased price swings. We are considering buying call options to profit from further upside, or using call spreads to limit the cost of entry.<\/p>\n
We remember the price spike to over $120 a barrel in 2022 when sanctions were first broadly implemented. While a repeat of that scale is not our base case, it shows how quickly prices can move on supply fears. The market’s memory of that event is contributing to the current buying pressure.<\/p>\n
Traders with long positions in futures contracts should consider their risk management. We believe using trailing stops could be a prudent way to protect profits if the geopolitical situation suddenly de-escalates. The key is to stay nimble as headlines will likely drive trading for the remainder of the quarter.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Trump\u2019s sanctions threat on Russian oil sparks surge in crude prices, nearing key resistance levels.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27602","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=27602"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27602\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=27602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=27602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=27602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}