Futures Now

Oil could rise to $70 this year: Strategist

Oil breaks out of key trading level

Crude oil has broken through a significant hurdle, one that may signal that low prices are officially behind us.

The WTI contract's ability to surpass its 200-day moving average on Tuesday for the first time since July 2014 is a meaningful sign, according to Amherst Pierpont strategist Robert Sinche.

"We had a double bottom in oil back in February. We've had a good rally. It stopped a couple of times around this 200-day moving average. This could be the breakout," Sinche said on CNBC's "Futures Now.

The move comes ahead of a Sunday oil producers meeting in Doha, Qatar. The big hope for oil bulls is that the major producers will agree to freeze output at current levels.

Saudi Arabia's Oil Minister Ali al-Naimi.
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"You want to get at least a one-day close above that 200-day moving average. ... "A two-day close would give time for the Saudis to have a response," Sinche said Tuesday. "(A two-day close) really then does become support rather than resistance, and we're kind of into a new regime here for oil prices."

And, that "new regime," along with a recovering global economy, could help drive crude prices securely into the $50 to $70 range this year, he added.

Prices at $70 a barrel would be more than 60 percent higher than Tuesday's close of $42.17.