Brent breaks $80 as the oil bulls put on the squeeze

Oil is ripping higher today, rising nearly 5% to the best levels since October. WTI crude oil is up $3.60 to $77.49 while Brent has cracked $80.

A Reuters report appeared to kick off the move as it says the US will impose sanctions on 180 vessels transporting Russian crude, dozens of traders and two major oil companies. The document was said to be circulating among traders and purported to be from the US Treasury. Reuters couldn’t verify its authenticity.

There is also a sense that Biden will increase sanctions on Iran before he leaves office.

In addition, the US is experiencing a cold snap that some models show will continue through month-end. That could lead to well freeze-offs and high distillate demand.

Technically, this looks like a big bounce from the base near $67 but WTI will need to break the October high of $78.46 to confirm it.

This article was written by Adam Button at www.forexlive.com.