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.
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