The Smart Way to Play Crude

on July 09, 2013 at 12:00 PM

Oil Drops To $96 A Barrel As Energy Prices Decline 1.4 Percent In April

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: | Managing Director, TJM Institutional Services

Read the remainder of this article on CNBC’s website.

More from CNBC:

High Oil Prices Not What Asia Needs Now

Look Out for Huge Oil Spike

Market’s ‘Level of Truth’