The reason is not because of the graph; this is totally fundamentals. Recently, people believe that it's because of the turmoil in the middle east that causes all this rally on the oil ; I would like to say that that is partially true. The truth is it is just another evidence of basic microeconomic at play. Supply and Demand! The oil rally right now is primarily due to the supply reduction; everyone is playing on the expectation that the production curb will be pushed all the way to the end of 2018; In fact, I wanted to long crude oil since it was around 52. xx or below which I actually did analyze this on my another channel, but I closed the trade a bit to early because the investment thesis then was just to play in a trading range between 50 to 55 since I didn't think it would go anywhere above 55 because I mean why would it! But, it did due to middle east - thanks man! So, even if I have closed my trade on this, I still think that it will continue the move; just so you know, I don't see it goes above 70 though, unless there's a demand growth which I don't see any now - you have to differentiate between movement of commodity due to supply reduction and demand growth; the latter is a better one. Also, I have a theory, Aramco is going next year which if the Saudi Arabia wants to pump the price higher; you know what that means right.
LONG WTI ! Buy On DIP