The dynamics of crude oil prices have been characterized by a pronounced price trend, high-intensity jumps, and volatility. The price trend can be divided into three distinct categories: rising, falling, and “choppy sideways” or range bound in what is commonly known as a symmetrical triangle or pennant technical pattern . A change in the trend generally requires a change in the underlying market fundamentals, such as supply, demand, legislation, and geopolitical happenstance. Traders’ and market players’ expectations concerning these trends in the future are reflected in crude oil spread options prices, which can be used to forecast significant changes in the long-term movements of global oil prices.
