Insights 
VT 
Key Points:
- WTI crude rose 0.6% to $69.64, Brent at $72.10 after over 3.5% gains the prior session.
- Sanctions on Russia could disrupt over 7 million barrels/day in supply.
Oil prices extended gains on Tuesday, with West Texas Intermediate (WTI) rising 0.6% to $69.64 per barrel and Brent crude touching $72.10. The market held onto its strongest rally in more than five weeks after U.S.
President Donald Trump issued a ten-day deadline for Russia to reach a truce over Ukraine or face new tariffs. WTI and Brent had surged over 3.5% in the previous session on fears of fresh supply disruptions.
Cross-border tensions have added a fresh layer of risk premium to the oil market. Russia currently exports over 7 million barrels per day of crude and refined products.
Analysts warned that a full imposition of U.S. sanctions could throw global balances into deficit—even if OPEC+ begins to unwind additional output cuts.
Traders are also watching two critical events: the August 1 U.S. trade negotiation deadline, and an upcoming speech by Federal Reserve Chair Jerome Powell.
Market participants hope Powell’s remarks will offer clarity on whether the Fed will resume cutting rates in the near term. A dovish tilt could further support commodities by weakening the U.S. dollar and improving risk sentiment.
Technical Analysis
After finding strong support around $66.20 on 29 July, crude oil reversed its previous downtrend and built a steady series of higher lows. The chart shows a sharp breakout from the narrow consolidation band late on 30 July, with price surging past $69.00 and closing the latest candle at $69.638.
Picture: Crude oil lifts above $69.60 as bulls regain short-term control, as seen on the VT Markets app
The 5-, 10-, and 30-period moving averages are in bullish alignment and sloping upward, reinforcing a strong short-term trend.
The MACD shows a bullish crossover with expanding green bars, indicating growing upside momentum. The histogram has broken above the zero line, and both the MACD and signal lines are pointing north.
These signals suggest potential for further gains, especially if price holds above the psychological level of $69.50.
Cautious Forecast
WTI needs to stay above the $69.20 support area to maintain its current trajectory. A break above $70.00 would open the door to a test of $70.80. However, sharp pullbacks remain possible if sanctions are delayed or if the Fed strikes a more hawkish tone than expected. Traders should prepare for heightened volatility heading into the August 1 deadline.
