Chart of the Day: WTI Crude Remains in a Violent Uptrend
With seemingly no end in sight to the Iran war along with the closing of the Strait of Hormuz, crude oil (and futures) have been a huge beneficiary. You can see from this chart below that just less than a year ago oil prices were down in the $55 area, but with the uprising of the war the price of crude skyrocketed and remains buoyant.
Just 16 months ago we also see a more moderate lift in crude prices and then a pullback; that was the first attack on Iran that was seen as the “end of their nuclear ambitions.” Clearly that proved untrue.
That big spike in March was enormous, a more than 100% gain in a few months. Though the commodity pulled back a bit in the summer the uptrend has been re-established, with higher highs and higher lows. Crude has lost a bit of momentum recently, but oil volatility continues to be elevated, which means large moves up and down are likely.
That big gap at the $100 level likely needs to be closed and soon, and if it does happen that may spark a renewed move higher in oil. Keep an eye out here.
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