Oil has 'one last gush on the horizon'

REUTERS/Essam Al-Sudani

Iraqi workers stand near a pipeline as it ejects oil at Al Tuba oil field in Basra, southeast of Baghdad February 19, 2015.

• West Texas Intermediate crude oil crossed $67 a barrel for the first time since December 2014.
• The CitiFX technicals team says $70 is in reach.
• They say the current rally looks a lot like what transpired between 2009 and 2011.

Oil prices aren't done rallying just yet and could reach $70 a barrel in the next few weeks, according to the CitiFX Technicals team.

West Texas Intermediate crude oil crossed $67 a barrel late Thursday as traders set their sights on escalating geopolitical tensions in the Middle East.

Earlier this week, President Donald Trump warned Russia about its cooperation with the Syrian government.

"Russia vows to shoot down any and all missiles fired at Syria," Trump tweeted. "Get ready Russia, because they will be coming, nice and new and "smart!" You shouldn't be partners with a Gas Killing Animal who kills his people and enjoys it!"

While Trump has walked back his hawkish rhetoric a bit, traders aren't taking any chances, running WTI to its highest level since December 2014.

And the CitiFX Technicals team, led by Tom Fitzpatrick, says those gains are likely to continue into May. They think the rally off the 2016 low looks very similar to the path of the 2009 to 2011 recovery in oil prices.

"The scale on this chart is related to today and suggests a move towards $70 by early May is still possible," the team said in a note to clients sent out on Wednesday.

"After the $115 peak in 2011 Oil ranged between $115 and $75 for 2 1/2 years . A similar dynamic this time would suggest a $70-$50 range after the high is put in."

CitiFX Technicals

Get the latest Oil WTI price here.