Yesterday, oil was higher initially with prices rallying into the European lunchtime session. This saw front-month WTI push up to $68.50, a three-week high. But trade then turned after President Trump announced a 50-day deadline for Russia to end its war with Ukraine.
A failure to do so would lead the US to push for sanctions, not just on Russia, but on all buyers of Russian oil. The Trump administration could simply add non-compliant countries to its tariff list.
Crude pulled back, and the sell-off continued into early trade this morning. But WTI found support around $65.50 and there’s evidence of some buying creeping back in. As with President Trump’s broader trade war, investors seem convinced that the 50-day window gives the US, Russia and Ukraine an opportunity to hammer out some kind of deal.
Despite this, the daily MACD continues to hold around the neutral region, so offers no clues over the short-term direction.
Source: TradingView
