Saudi Arabia's decision to cut diplomatic ties with Iran sentoil on a wild ride to start the week.
Crude closed in the red Monday after surging 3 percent at one point — but one widely followed commodities watcher says despite the big moves, oil is likely to trade in a very tight trading range for the rest of 2016.
"I think we're going to be $4 on either side of $37 for spot WTI," Dennis Gartman told the CNBC "Fast Money" traders on Monday. "$33 is the low. $41 is the high. I think WTI will be happy to spend the next year or so at and around $37 per barrel. This is where we are today."
West Texas Intermediate crude was down 1.4 percent at $36.24 late morning Tuesday.
Oil's volatility Monday offered a stark reminder that record-high supply and continued aggressive production should keep crude prices low — at least in the near term.