Oil cooled somewhat at the close after reaching five-month highs an hour earlier.
I think those buying oil in anticipation of a possible Iran-Israel war are taking an unnecessary risk by betting on an unknowable outcome. In general, the best trade is to alleviate war fears and that is what the market as a whole did today. If there is a war bounty, it could come out Monday.
Regardless, this marks the fourth straight week of gains for Brent and the first close above $90. The $90 level is important because it’s an area where OPEC could start to bring back some barrels. Now, this isn’t going to happen right away and there is plenty of room for overshoot, but I would be wary of chasing $100.
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