Crude Oil futures have rallied Monday into Tuesday, the light holiday volume in conjunction with the Russia-Ukraine situation led to a sharp move higher over the long holiday weekend.

Heading into the weekend, we liked owning volatility and option premium on the thesis of a Russia-Ukraine escalation. This morning, we exited most of our long positioning as price levels reached into the 66.00 level.

Catalysts have been stacking up for the geopolitical bulls while inventories remain tight. With an OPEC+ meeting scheduled for this weekend, explosive rallies may be short-lived. Two-sided volatility is likely to stay amplified.

Technical Analysis:

Prices are sharply higher this morning but have faced resistance within our 65.15-65.30*** level this morning. Selling off over $1.00 from the overnight highs, these levels aren’t bad for intraday longs. But, we’d advise against chasing up above..

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