WTI crude price extends gains as sanctions and stockpile draw lift market sentiment
Crude oil climbs as U.S. sanctions, inventory draw, and trade optimism support bullish outlook
WTI crude oil prices climbed toward $65 per barrel on Wednesday, extending a more than 2% rally from the previous session. The upward move was driven by fresh U.S. sanctions targeting a key Iranian figure involved in LPG and crude shipping, raising concerns over potential disruptions in Iranian oil exports.
The geopolitical catalyst arrived alongside bullish supply-side data, as industry reports indicated a 4.6 million barrel draw in U.S. crude inventories last week. If confirmed by the Energy Information Administration later today, it would mark the largest weekly drawdown since November.
Technical traders noted WTI’s ascent above its pivot level at $63.76, now hovering around $64.80. The price structure has broken out of an ascending triangle pattern, suggesting potential for continued gains. A tightening spread between the 50-day EMA at $62.82 and the 200-day EMA at $63.52 also signals a possible bullish crossover. Immediate resistance lies at $65.37, with the next upside target at $66.87 if momentum persists.
USOIL price dynamics (March 2025 - April 2025) Source: TradingView.
Brent breaks trendline as upside potential widens
Brent crude followed a similar trajectory, rising to near $68.06 after breaking out of a multi-week descending trendline. The global benchmark has now reclaimed the key $67.23 resistance level, which also aligns with its 200-day EMA. With the 50-day EMA curling higher at $66.54, a bullish crossover appears imminent. The price is testing the upper boundary of its consolidation range, and a sustained move above current levels could open the door toward $69.45 and $70.86, with a broader extension possible up to $72.27.
Market sentiment also improved after comments from U.S. President Donald Trump indicating that he has no intention of removing Federal Reserve Chair Jerome Powell. This helped ease investor concerns over central bank independence and broader economic stability. Additional optimism came from reports that the U.S. is moving closer to trade agreements with India and Japan, while reiterating that the ongoing U.S.-China trade impasse is “unsustainable.”
Earlier coverage noted the downside risks from geopolitical tensions and monetary policy shifts. With both fundamentals and technicals turning more supportive, traders now look to inventory data and geopolitical updates for short-term direction.
