Oil hits 7-year high, but is this sustainable?

Oil’s rally has been nothing short of impressive of late, yet falling volumes and bearish patterns at the highs warn of a potential correction.

Energy 4

Oil prices risen over 40% since the December low, helped by a combination of positive demand forecasts, the fear of Omicron subsiding and of course the rise in tensions between Russia and Ukraine. Having cleared the October highs it looks set to continue marching north, only volumes have depleted over the past week or so which suggests a fall in bullish interest. In today’s video we take a look at the daily and hourly chart of the WTI futures contract and highlight key levels which could be the difference between ‘buy the dip’ mentality or confirmation of a correction.

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