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Real Time Insight

While we’ve all been paying close attention to Fed Chairman Janet Yellen on Capitol Hill the last couple of days and happily chalking up new all-time highs in the Dow Industrials and Transports, there’s one commodity that has taken to the sidelines recently. Crude oil has quietly crept down into the afterthought category of the market. I still worry what will happen to prices at the pump if we get a big rally in oil given that at $100 a barrel I’m still paying $5 a gallon. Good thing I take the train in to Zacks.

I thought that tensions in the Middle East were supposed to put pressure on oil prices. That hasn’t been the case recently as prices have continued to drop while the Gaza Strip returns front and center to the news.

Before that there was danger of supply disruption in Northern Iraq due to rebels taking over towns and wells in the region. That seemed to have some effect and pushed oil to the highs of the year so far.

With oil hovering near the $100 a barrel market today my question is, what’s next for oil, $110 or $90?

The oil market seems to move within ranges where it consolidates then it breaks sharply in one direction or another for a short period of time then finds another range to consolidate in. It seems to me like the last breakout to the upside we saw to yearly highs was merely oil locating the top of the range and $99 being the new bottom of the range.

So I think we see $110 before we see a dip down to $90. But what do you think about oil? Chime in below. 

Zacks Releases Their 7 Best Stocks for January, 2015

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new visitors free of charge.

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