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Oil cooled somewhat into the close after hitting the best levels in five months an hour earlier.
I think those buying oil on a potential Iran-Israel war are taking an unnecessary risk in betting on an unknowable outcome. In general, the best trade is to fade war fears and that’s what the broader market did today. If there’s a war premium, it could come out on Monday.
In any case, this is the fourth straight week of gains for brent and the first close above $90. The $90 level is an important one because it’s an area where OPEC might start to bring some barrels back on. Now that’s not going to happen right away and there’s plenty of room for an overshoot but I would be wary of chasing $100.
