Oil News: WTI Bulls Target $70.21 Breakout as Outlook Turns Bullish on Geopolitical Risks

Resistance Holds as WTI Approaches Key Technical Levels

Light crude oil futures inched higher Monday, with West Texas Intermediate (WTI) once again testing the resistance zone between the 200-day moving average at $70.09 and the 50-day at $70.21. This level has held as resistance for four consecutive sessions, but traders are closely watching for a breakout that could trigger upside momentum toward the next pivot at $72.11.

On the downside, WTI continues to find support at $68.97. A break below this level could open the door to a retracement toward $67.61.

At 10:14 GMT, Light Crude Oil Futures are trading $69.45, up $0.09 or +0.13%.

Oil Prices Rise on Trump’s Russian Tariff Threat, but Market Skepticism Lingers

Prices moved modestly higher after U.S. President Donald Trump threatened to impose tariffs of 25% to 50% on countries importing Russian oil. Brent futures climbed, while WTI rose. However, gains were limited as traders questioned the seriousness of the proposal. ING’s Warren Patterson noted “fatigue” in the market over tariff rhetoric from Washington, suggesting that without concrete action, crude markets are unlikely to react strongly.

India and China in Focus as Key Russian Oil Buyers

India and China, the largest buyers of Russian seaborne crude, remain central to any impact such tariffs could have. Russia now supplies 35% of India’s total crude imports, giving New Delhi significant exposure. However, India’s oil secretary recently stated that Indian refiners will only purchase non-sanctioned Russian oil, potentially reducing supply channels if further sanctions are imposed.

Chinese buyers, meanwhile, appear largely unfazed. Major firms like Sinopec and Zhenhua Oil have already paused or reduced purchases in response to prior U.S. sanctions, and several traders reportedly view Trump’s latest threat as posturing. Beijing emphasized that its cooperation with Russia would remain independent of third-party influence.

OPEC and Enforcement Remain Wild Cards

For traders, the key question is whether any tariff policy would be enforced and whether OPEC would respond to any disruption in Russian flows. Analysts pointed to last week’s sanctions on Venezuelan oil as a potential framework for how similar actions against Russia might unfold. Markets are also watching for any signs that China or India could issue broader restrictions in response to Washington’s pressure.

Oil Prices Forecast: Bullish Near-Term Outlook with Caution on Geopolitical Risk

Technical support and rising geopolitical risk offer a near-term bullish tilt for WTI. If prices can clear resistance around $70.20, a move toward $72.11 is plausible. However, uncertainty over enforcement of U.S. policy and muted reactions from key importers like India and China temper the upside. Traders should stay alert for any policy follow-through or OPEC signals.

More Information in our Economic Calendar.