What is IV rank and how do options traders use it?
tastytrade logo
price of oil us dollar bill

Jun 9, 2022

Crude Oil Price Soars on Bullish Demand Outlook, Tight Markets Post Russian Embargo

By:Diego Colman

Oil prices (WTI) soared on Wednesday, rising more than 2% to as high as $123, their best levels since March 9th, supported by strong fuel consumption heading into peak driving and travel season. The latest inventory showed that gasoline stocks fell unexpectedly in the week ended June 3 by 0.8 million barrels, a sign that demand remains robust despite sky-high prices at the pump for both regular gas and diesel.

The rally was also supported by comments made by the United Arab Emirates, one of the most important OPEC+ members. UAE Energy Minister Suhail Al-Mazrouei said that crude is nowhere near its peak, with markets expected to tighten further once China entirely rolls back mobility restrictions, fully reopens its economy, and ramp up imports. Al-Mazrouei also indicated that OPEC+ can’t guarantee sufficient output amid little spare capacity, warning that prices could reach “unseen levels” if Russian exports were completely sidelined.

The European Union announced a partial oil embargo late May, banning most Russian petroleum shipments by the end of the year to punish the Kremlin for its invasion of Ukraine and slash its main source of financing for the war machine. There is no doubt that these sanctions will worsen disruptions to energy flows, but Russia will likely redirect exports to friendlier nations such as India and China to replace customers in Europe. Yet, some barrels will likely be lost for good, exacerbating supply and demand imbalances and creating a bullish backdrop for both WTI and Brent for the coming months.


After clearing the $117 hurdle earlier this month, oil prices have accelerated their advance, reaching their highest level in three months on Wednesday. With the bullish bias intact, WTI is likely to charge higher and challenge channel resistance near the March high at $130.50 in the near term. If bulls manage to drive the price above the ceiling, there isn’t any meaningful resistance until $147, the 2008 highs. On the flip side, if buyers liquidate positions to book gains on their bullish bets and prices begin to retrace, initial support is seen around the $117 handle. If crude breaches this area, downside pressure could pick up, paving the way for a possible move towards $111.50.


WTI Oil Chart Prepared Using TradingView

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on 

tastytrade is a trademark/servicemark owned by tastytrade.

tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).

tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.

Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.

Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.

© copyright 2013 – 2022 tastytrade. All Rights Reserved. Applicable portions of the Terms of use on apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastytrade’s podcasts as necessary to view for personal use.