Oil Futures Targeting $50Posted 01/04/2019 8:47AM CT |
After falling over 25% in 2018, crude oil futures have posted a sharp recovery to start 2019. Recent news that OPEC is considering extending cuts beyond the 1.2 mb as well as a milder winter is allowing the driving season to get off to an early start. Gas Buddy, which researches over 150,000 gas stations with real time fuel price information, is expecting gasoline prices could surge to over $3.00 per gallon by May. This could easily increase demand for crude oil to be cracked in to more petroleum. Keep an eye out for $50 a barrel, this is a critical level that once we break through a new trend could be starting to the upside. Here is a chart of the daily February crude oil.
Crude Oil Feb ’19 Daily Chart