The price of Chicago WTI crude oil futures is up 1.51% at $116.40 per barrel on mid-Wednesday trades.

Oil prices rally on Wednesday as the European Union leaders agreed to a partial and phased ban of Russian oil and as China ended its COVOD-19 lockdown in Shanghai.

The EU leaders, on Monday, agreed in principle to cut 90% of its Russian oil import by the end of this year. This is the bloc’s toughest sanctions yet since the start of the invasion of Ukraine by Russia.

In China, strict COVID-19 lockdown in Shanghai came to an end on Wednesday after two months. This prompts market participants to expect a firm fuel demand resumption from the country.

On the technical side, the RSI of Chicago WTI crude oil futures stood at 62.77 and is currently trading above all SMAs: MA (5), MA (20), and MA (50). So, BUY position can be generated with the following target and stop-loss:

TRADE SIGNAL: CHICAGO WTI CRUDE OIL FUTURES – BUY: 122, TARGET: 130, AND STOP-LOSS: 118