Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Crude oil prices rise as EU mulls action after alleged Russia war crimes

WTI and Brent crude oil prices rise as fresh supply worries appear from the conflict in Ukraine and WTI prices rise for the second day, but the falling 20-day SMA appears to be capping upside.

Source: Bloomberg

WTI Crude and Brent oil prices are moving higher Tuesday as the European Union (EU) is said to be readying a new package of economic sanctions against Russia. The new package may further target Russia’s oil industry. The United Nations Security Council is set to discuss alleged Russian war crimes at a meeting tonight.

The accusations stem from a civilian massacre in the Ukrainian city of Bucha. The Russian army is thought to be responsible for dozens of dead civilians after retreating from the Kyiv suburb. French President Emmanuel Macron said he will try to persuade European leaders to target Russia’s oil and coal industry saying, 'we can’t let it slide.'

Unlike the United States and the United Kingdom, the European Union has been hesitant to specifically target Russian energy products, although the appetite for such a move has been growing. No specifics on what that move would look like have been brought forth, but Russia exported a little over 2 million barrels of oil a day to the EU in 2021, according to data from the International Energy Agency (IEA).

A European embargo on those Russian oil exports would have a far-reaching impact on the global energy market. Moreover, the United States is reportedly considering another round of sanctions, according to comments from US national security adviser Jake Sullivan earlier this week. The US ban on Russian oil will go into full effect on April 21.

Meanwhile, the Covid lockdown in the Chinese financial hub and megacity Shanghai was extended. The lockdown, which began last Monday, was due to expire today. The extension may hit Chinese demand for oil and other commodities, especially if the current surge in cases spreads to other cities. For now, oil markets will likely remain on edge until clarity over the EU’s potential move or lack of one comes to light.

Crude oil technical forecast

Crude oil traded above its 38.2% Fibonacci retracement level this morning after prices extended higher from the prior day when prices found support at a rising trendline. The falling 20-day Simple Moving Average appears to be capping upside, however. Meanwhile, the MACD oscillator is on the move lower while the Relative Strength Index (RSI) is rising after crossing above the 50 center point. A break above the 20-day SMA could help to propel prices higher, but upside may be limited for the time being.

CRUDE OIL DAILY CHART Source: TradingView

Follow Thomas Westwater on Twitter @FxWestwater

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. This information Advice given in this article is general in nature and is not intended to influence any person’s decisions about investing or financial products. ​

The material on this page does not contain a record of IG’s trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Trade on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.