Oil prices are highly likely to remain volatile this week as the crude oil price violated an important support level of $100. The move was the result of investors reacting to the massive strategic oil reserve release from the US.
However, it is important to keep in mind that this short-term measure to target lower oil prices is likely to run out of course soon, as this doesn't resolve the long-term problem.
The issue here is two fold: First, there is a clear supply shortage on the market, and second, we have flaring tensions between the US and Russia over its invasion of Ukraine. As long as we don't see these issues rectified, it is not likely for oil prices to fall significantly from their current levels.
Technical Analysis
Brent oil is trading above the 100 dollar price mark and also above the 50-day SMA on the daily time frame, which is a promising sign for the bulls. As long as the price continues to trade above the 50-day SMA, traders are hopeful that the current trend will prevail.
