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Crude Oil: Blast-Off Time Or Heading To $60 Range?

ByChris Kimble
Published 04/14/2022, 01:47 PM
Updated 07/09/2023, 06:31 AM

Inflation concerns turned into nightmares for some over the past several weeks as crude oil prices rocketed higher on the heels of overseas tensions, war, and sanctions.

Pain at the pump has now become a reality as consumers fill their cars. This is on top of rising food prices.

Could there be some relief coming soon to the gas pump? 

Well, that depends on how crude oil prices move in/out of today’s important trading triangle. See the chart below.

Crude Oil Daily Chart

This looks to be a critical inflection point.

Will prices break out and blast off above the falling trend line of the triangle (ouch for consumers), or will prices break down lower and see the potential of a measured move? Stay tuned!

Latest comments

value of this long "article" is actually negative beacause someone had to waste their time to create it. Also.. did you know that water is wet? Shocking!
You are damn right, oil will either go up or down. why didn't I think about it
Or stay the same. I'm 100% sure that one of these outcomes is correct.
oil is going to be up to 250 a barrel by Xmas no one has a clue how far into inflation we are these numbers are old from the previous month
Nope
Demand destruction has already kicked in, can't cost $200 for drive 4 hours, people will just stop going places. Oil should be $80 on the high end, any real company that knows what they are doing are making windfall profits at that price.
 Nope, in inflation adjusted prices, $80 a barrel is around $60 a barrel in 2018, which was not profitable for most oil companies. At current producer prices, you won't even break even with $80 for an offshore development.
At this point its going to be hard to get oil 60. Especially with the ESG push and all of these oil companies know that with the push for the eradication of combustion engine vehicle will force them to drill less if they want to avoid being forced to take losses by the government. Until a more oil friendly administration comes to office don't expect a over supply situation any time soon. These people are smart and they will not over drill no matter how much the current administration begs.
Oil will no doubt go to 60 range, but man, I want to know when. This year? in three or five years?
Stupid trade to be in right now. Unless you're TINA gated hedge fund.
Oil will go down only with demand destruction.Demand destruction will come with aggressive fed cut
Mr. Kimble, what will drive price to $60, maybe Putin lets off a few nukes
To me high oil prices are because of no new investment in the sector for last two years.ESG had taken over the agenda of green over development.The only way oil is going down to $60 is if there is another lockdown like COVID 19.Do not want oil to go down that way.
Here’s my take on technichal vs. fundamental analysis: fundamentals drive price movement, which creates data to chart. Charts do not create, they react. The fundamentals are in place for an unprecendented and lengthy oil rally (democrats in office.) SPR releases do not change supply and demand, rather, they merely move oil reserves from one stockpile to another. I hope this helps.
$60?! In what world given the current supply constraints will oil retreat to 60? what your analysis fails to take into account is that the temporary dump was driven by China lockdowns and the world releasing their oil reserves. similar to how China tried to manipulate the price of copper about a year ago, and dip will be short lived as the us or any other nation has the supply to meet demand for an extended period of time
let me help you it'll be 160 by July
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