Experts warn of potential risks in the oil market as global uncertainty looms.
Transcript:
CARLEY GARNER: Crude oil has had a nice little rally obviously in the last week or two. And a lot of that is based on the idea of potential sanctions on Russia, maybe even Iran. And so that would pull some barrels off the market. But the reality is, in the big picture, we are very well supplied. So if those sanctions don’t come into play or those entities find ways to get around them, which has kind of been the MO for those types of things. The crude oil price should continue to make lower, lower highs and lower lows.
We’ve seen basically since the March, I think it was 2022 high, crude oil rallied to $125, $130. Since then, we’ve basically been seeing every rally get sold into, and I think that’s going to continue. So again, we don’t know what’s going to happen on the political front, but this is a really good time to mind your risk on the downside in oil, because if the support breaks, we’ve been holding the $65 for two or three years. If that level breaks, there’s really nothing stopping it until we get into the low 50s. So we’re focused on the downside risk in crude oil.
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