Ultimately, this is a never-ending drama and we, I think, are starting to come to grips with the idea that the conflict in the Persian Gulf is nowhere near being finalized. The Iranians will more likely than not continue to keep the strait closed or heavily restricted, and that will greatly influence the flow of crude oil. This is a situation that I think is murky to say the least.
Ultimately, it looks as if a bullish flag is forming in the oil markets. We’ll see. A measured move would lead to the next swing high, somewhere around $93 if it were to break out to that upside. But again, as I’ve been saying, this is driven by the latest headlines. It’s not really driven by anything else, and unfortunately, they can come out whenever.
Brent