Oil Touches 125 USD, Highest Since August 2008
07 March 2022
Oil rose more than 10% today, topping the 125 USD threshold, before correcting some of the gains as the war conflict in Ukraine still rages on.
Oil at these levels will likely trigger another economic recession, probably with the same magnitude as in 2008/2009.
It is hard to define any supports and resistances since the price is going parabolic. However, as long as it trades above 100 USD, the long-term outlook remains intact. The medium-term outlook seems bullish if it remains above 110 USD, while short-term bulls will likely buy the dip toward 115 USD.
On the other hand, if there is any diplomatic and peaceful resolution to the military conflict, traders could take profits from the recent rally, likely dragging oil notably lower.
So far, commodities have been the biggest beneficiary of the war, rising to levels unseen in many months or years.