Tom Kloza says that the oil prices may rally with the escalations in Middle East tensions
Tom Kloza who is an expert about Energy has said that the prices of oil are going to begin their rally again as the hostilities have resumed with Iran.
Kloza though says that this bullish activity is going to end up being temporary.
He said that they are in the seventh or the eighth innings of the rally which is sustainable and he felt that he was very confident that they were going to be exiting this year at a number that is going to be a lot lower.
There was a fall in Brent and WTI Crude on this Tuesday. The commodities had returned to the levels they had been seen at before the airstrike which had taken place on Thursday on Iran by the United States and led to the killing of a military leader of Iran, Qaseem Soleimani.
Kloza feels that there is a lot left in the tanker of the canister and has a feeling that the prices of oil may be rising a further $5 in the week per barrel.
He said that they need to be on their feet when it comes to these attacks and be careful of not making the mistakes which had been made in the month of September on the Saudi Facility. He said that a $700 handle was going to be possible always for a shorter period of time.
He says that the biggest concern for him in the connection to these tensions in the middle east is the opposite effect on the prices of oil in case there were targets which were softer and had to do a lot with the transportations