Expert sounds alarm on oil prices, warning of 'lower lows'

Experts warn of potential risks in the oil market as global uncertainty looms.

Transcript

00:00Crude oil has had a nice little rally, obviously, in the last week or two.

00:03And a lot of that is based on the idea of potential sanctions on Russia, maybe even Iran.

00:10And so that would pull some barrels off the market.

00:12But the reality is, in the big picture, we are very well supplied.

00:16So if those sanctions don't come into play or those entities find ways to get around them,

00:21which has kind of been the MO for those types of things,

00:24the crude oil price should continue to make lower highs, lower lows.

00:31We've seen basically since the March, I think it was 2022 high, crude oil rallied to 125, 130.

00:39Since then, we've basically been seeing every rally get sold into.

00:42And I think that's going to continue.

00:44So again, we don't know what's going to happen on the political front,

00:47but this is a really good time to mind your risk on the downside in oil.

00:51Because if the support breaks, we've been holding the 65 for two or three years.

00:56If that level breaks, there's really nothing stopping it until we get into the low 50s.

01:00So we're focused on the downside risk in crude oil.