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• WTI price edges higher to $77.25 in Tuesday’s early Asian session. 
• The US increased sanctions against Russian energy, boosting the WTI price. 
• The prospect of fewer Fed rate cuts this year might cap the downside for the black gold. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $77.25 on Tuesday. The WTI price climbs to the highest level since October 8 as the US sanctions on Russian oil threaten to tighten global supplies. 

US President Joe Biden’s administration imposed new sanctions on Russian oil giants Gazprom and Surgutneftegaz, as well as 183 oil tankers, often referred to as Russia’s ‘Shadow Fleet.’ The mounting concerns over supply disruptions could support the black gold in the near term.

“Supply is the key near-term driver, with Biden’s fresh sanctions on Russia’s two main oil producers and Russian tankers further complicating the logistical challenges Russia now faces,” said Chris Weston, Head of Research at Pepperstone. 

China’s Exports and Imports in December both beat expectations by a wide margin, according to the National Bureau Statistics of China on Monday. Additionally, China’s Trade Surplus reached a new all-time high of $990 billion. The encouraging Chinese economic data could underpin the WTI price, as China is the world's second-largest consumer of oil and gas. 

On the other hand, the upbeat US December employment report reinforced expectations that the US Federal Reserve (Fed) might not cut interest rates as aggressively this year. A firmer Greenback could reduce demand for energy by making USD-priced commodities like oil more expensive for buyers using other currencies.

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