WTI CRUDE OIL - Crude oil review 14/01/2025 - 01/14/2025 (GMT)

Oil prices rallied nearly 3% to a three-month high due to the imposition of new U.S. sanctions targeting Russian oil and gas revenue, potentially disrupting Russian oil exports. The sanctions are expected to severely disrupt Russian oil exports to major buyers like India and China, leading them to scramble for alternative sources. In addition, extreme cold in the U.S. and Europe has also contributed to the increase in oil prices by boosting demand for heating oil and other heating fuels.
 On the technical side, the price has broken above the triangle formation that in effect in the second half of the year and is currently testing the resistance of the upper band of the Bollinger bands. Late last week the price even traded above the Bollinger bands showing that volatility has return in the market for crude oil after some sideway movement in the past couple of months. The recent bullish trend has pushed the 50-day moving average close to the 100-day and could possibly even cross above it validating the bullish momentum. On the other hand the Stochastic oscillator is in the extreme overbought levels for a prolonged period of time and it is possible to see a bearish correction before resuming the bullish run.