Bank of America said Monday’s whiplash in oil prices could indicate the commodity has reached a short-term peak. Technical strategist Paul Sciana described Monday’s oil market movement as a “peak panic” in a note Monday, with prices soaring to $120 a barrel overnight before falling during the day and falling below $90 in late trading. Sciana believes $120 is the upper limit for Brent oil prices in the near term, but cautioned that investors should expect prices to remain high. He expected Brent crude to trade between $90 and $110 in the medium term, based on how the oil market settles in the first half of 2022 after an initial surge following Russia’s invasion of Ukraine. @LCO.1 Mountain 2026-02-27 @LCO.1 Charts from February 27, 2026 onwards. “We expect trading to remain headline-driven and somewhat volatile, forming a higher range, but the tail risk objective remains a risk,” he said. Sciana warned that oil prices still have room to rise due to worrying supply headlines. Based on technical levels, if Brent prices spike further, the price could jump between $134 and $150, although there is a slight chance of it rising further. However, if Brent falls below its all-time high of $81.40, it will then fall to the level of the US-Iran war, signaling further price declines. Mr. Siana also updated his outlook for the S&P Energy sector and ExxonMobil. Bank of America said both the sector and stock prices were strong after big gains, and advised investors to hold off on buying both stocks for now. “Momentum is growing and signs of uptrend exhaustion are emerging,” Sciana wrote. “We want to reduce our longs and consider whether to add more push in the coming weeks.” .GSPE YTD Mountain .GSPE Year-to-date chart.
