Crude Extends Rally as Saudi Tankers Struck in Strait of Hormuz

Crude extended yesterday's sharp rally this morning after two Saudi Arabian tankers were hit passing through the Strait of Hormuz, pushing WTI futures up another 1.75 (+2.00%). That follows Friday's rally, when futures settled at 85.76 after weekend strikes on Iranian launch sites cast doubt on the diplomacy-and-sanctions approach the administration had signaled the week before. Futures briefly poked above key resistance at 88.07, the July 23rd high, failing just above at 88.13, which Dan is now watching as the key level for short-term traders. Longer-term fundamentals remain bullish.Oil jackpump at sunset 2 by Evgenii Mitroshin via iStock