A Breakout but for How Long?

In the past month crude oil prices, which had been trading in a fairly defined range, broke out to the upside. This breakout lifted prices for both WTI and Brent by approximately $7-8 per barrel since the start of October. The recent jump in crude oil prices is largely attributable to two factors – market rebalancing and geopolitical risk. The question we have been asked repeatedly over the past week is whether we believe that the current price movement upward is sustainable? Accordingly, we thought this would make a good topic for our News Flash.