Oil Rallies Off Russian Oil Ban

Oil has rallied significantly off news that the EU is planning to ban Russian imports of oil, despite the fact that Russia supplies 27% of the EU's oil and 40% of its gas. Crude oil prices soared off this news and we were able to smash through a relative high at $116. This was our target from earlier. Recall that last week, we noted oil's relative strength and set a target at $116. It is difficult to find justification for a signficant retracement, but a technical pull back should find support at $116 or $113. Our next target is $122, which would be signficant as this is a relative high.