With the Syria situation still up in the air, the sloshing in oil will persist.
We have seen a $4 range in the Tuesday morning session, as oil continues to be ubersensitive to the Syrian news that drips out every few hours.
President Barack Obama has required congressional authorization in order to proceed with an attack, and that has certainly increased the volatility in the market, as it has added another catalyst to an already unsteady situation. Indeed, there is still little clarity regarding what the regional or global response would be to a limited U.S. attack, or a "slap on the wrist."
We continue to be bullish on the price of crude oil as the situation develops. Although we are quite well-supplied here domestically, any type of conflict presents a major undercurrent to the price of crude oil.
Playing the range from $104 to $109 continues to be profitable, but be prepared for a continued move to the upside. Oil is likely to retest the recent high of $112, and could even reach up to $124 once an attack gets underway.