Plenty of Coil in That Oil

In addition to natural gas starting off this week well we also have crude oil itself, below on the USO ETF daily chart, threatening to break well-defined resistance higher. You may have noticed gas prices creeping back higher at the pump, and that dovetails nicely with the energy commodities at-large showing signs go slowly waking up after a period of taking a clear backseat to the AI/tech mania. 

Furthermore, the renewed and sticky high inflation seems to be much more food-based inflation, with the likes of cocoa prices going bonkers and grocery stores showing no signs of easing. 

Still, it is hard to imagine oil and gas not eventually staging fierce rallies amid an ongoing inflationary regime, especially one where The Fed is much more bark than hawkish bite and is more geared towards rate cut rhetoric than further rate hikes. 

The $74 level looks to be the next upside hurdle to clear for USO. Names like RIG in the oil services are particularly beaten-down and still worth a look on the long side if oil clears next resistance.