For the first time since November, 2014 oil continued to move higher this week managing to get above the level of 80 USD. The energy crisis that’s getting worse in the EU has now spread to the US and China. While the whole energy sector has been rising, investors seem to ignore the strengthening US dollar or soaring US yields. 

The soaring US yields prices might only worsen the inflation that is already at its highest and it really seems this inflation is going to stay here for long. 

According to Reuters, The White House is once again reiterating – most likely in a strongly worded email – and urging OPEC+ to increase crude production. In addition, White House officials say they

"…are using every tool to address anti-competitive practices in US and global energy markets."

However, all these actions have not helped so far. As a respected energy market and geopolitical observer Daniel Yergin told Bloomberg,

"… the Biden admin doesn't have many tools on energy prices."

Recently, Moody's Investors Service has returned to the pre-pandemic oil prices of 50 - 70 USD a barrel range, on the back of expected restraint in production growth and a rise in costs. However, that is still way below the actual price and much more pessimistic than major banks on Wall Street, where the consensus is between 80 and 100 USD.

The next target for oil is likely in the 90 USD region, and considering the current bullish momentum, it could be reached pretty quickly. However, oil needs to stay above previous highs of 77 USD for the medium-term outlook to remain bullish. As long as that is the case, dips are expected to be bought, and the market should continue making new highs.