Crude has had an incredible run over the past two weeks. But I’d think twice before hopping aboard this speeding train.
At today’s highs, August crude oil futures was up more than 12 percent in two and a half weeks. It would be easy to attribute this rally to tensions in Egypt, but that would tell only part of the story. Both crude and S&P futures began their move on June 24, and although the move in stocks hasn’t been as dramatic, it’s reasonable to assume that part of crude’s move is due to a prevailing risk-on mentality.
Crude’s longer-term chart makes me think that prices north of $99.50 a barrel may be around for some time. That being said, if crude chooses to make a run for $110…
By: Jim Iuorio | Managing Director, TJM Institutional Services
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