Over the last 10 trading sessions, WTI Crude Oil has dropped over 13% from $52.00 to last nights low of $45.20.
Technically, we see good support near the $43.75 area, which was the reversal low posted on May 5th.
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Fundamentally, increased political tensions between OPEC members Qatar, Saudi Arabia and Iran could escalate into military engagement with some associated levels of supply disruption in the near-term.
As such, we have been looking to buy the dip in some of the local energy names like Origin Energy and Oil Search. (The ALGO engine gave a buy signal on OSH yesterday)
Further, we have also suggested that investors looking for a mean reversion higher in Crude oil prices can buy the BetaShare Oil ETF with the symbol OOO.
OOO traded as high as $8.10 just a week ago and has now in the low $7.00 area.
BetaShare Crude Oil ETF
Origin Energy
Oil Search
