Crude Oil: WTI pulling back towards 64 as US sanctions imposed on South Sudan oil facilities

• WTI pulls back after finding resistance at 65.74 on Thursday.
• The US imposed sanctions on South Sudan oil facilities. 

Crude Oil WTI is trading at around 64.24 down 2.41% on the day as the dollar regained some colors but the dollar index it is still trading below the 90 mark.

On Wednesday, the US sanctioned 15 South Sudanese oil-related entities. However, South Sudan’s Ministry of Petroleum said that U.S. sanctions on oil entities of South Sudan are counterproductive to efforts being made in order to bring peace and stability to the country.

The US Department of State imposed a “license requirement on all exports, re-exports, and transfers of any U.S.-origin items to those entities. The listed entities are a source of substantial revenue for the Government of South Sudan. Unfortunately, the South Sudanese Government, and corrupt official actors use this revenue to purchase weapons and fund irregular militias that undermine the peace, security, and stability of South Sudan rather than support the welfare and current emergency food needs of the South Sudanese people.” According to the US Department of State’ Heather Nauert, in a press statement released this Wednesday. 

South Sudan’s Ministry of Petroleum reaction was that he would “work closely with the U.S. Department of Commerce and take all possible measures to remove these restrictions and resume normal relations with the U.S.”

Earlier in the week, Crown Prince Mohammed bin Salman met with Trump. The escalating tensions between the two countries about nuclear weapons were on the table and it is believed that Trump will soon have a tougher stance on the Iranian nuclear deal. 

Venezuela production is declining to 1.5848 million barrels per day which also helped crude soar those last days.

Crude oil WTI daily chart:

The market found resistance at 65.74. Support is seen at 63.39 which is the 61.8% Fibonacci retracement level from the January-February bear leg; followed by 62.39 which is the 50% Fibo. To the upside, resistance is seen at 64.83, which is the 78.6% Fibo; followed by Thursday’s high at 65.74. The bull trend is still in place.