Oil Hits Triple Top at $105

Crude oil has soared over the past week, crossing about the $105 level for the first time since March. And if this level doesn’t hold, that could be very bad news for oil bears and consumers alike, warns Stephen Schork, the editor of the widely followed Schork Report.

“At this point, the bears need to hold resistance right at this level,” Schork said on Tuesday’s “Futures Now.” “We’re looking at a triple top that was established first with the Ukrainian headline back in March. We came up, tested that area again back in April, and once again we are up at that area. If we fail, then there is not a lot of resistance between here and $112 a barrel, and that is the high we set last August on the geopolitical headlines related to Syria and Egypt.”

And if crude stays hot, that could have some dire ramifications.

“From a fundamental standpoint, when you net back $105 crude oil, we are looking at a hit to the consumer. For instance, over the last couple of weeks, we’ve seen a $3.50 run-up in price—that will translate to about an eight- or ten-cent rise at the pump for the consumer. AAA prices are right around $3.65 a gallon on a national average—we could be looking at, over the next couple of weeks, should oil stay at this level, at $3.75. And for the consumer, that is a lot of money.”

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza