 Hello, welcome to today's CMC Markets Commodity Snapshot. Today we're going to be looking at the price of crude oil, namely the Brent contract, and how the crisis in Iraq and the technical chart pattern is setting up prices going forward. In the week before last, when the news came across the wires about the escalating problems in Iraq, we saw a huge surge in the price of Brent crude oil. That followed through the week after, with a break above 1.13, which had been capping the recent range in the price. But this week, we've not seen quite the follow-through. And so we need to consider why that might be and if there's going to be a further retracement, or if, in fact, this rally breakout can continue. Clearly for energy prices at the moment, the main consideration is the crisis in Iraq. But what we have to look at on the way forward in this fundamental outlook as to how Iraq can affect things are some technical considerations. For example, last week's COTS data from the futures exchange for Brent showed that positioning for oil had got massively net long. And even though that's obviously showing a demand for the commodity, what you can often get is a pullback in the other direction catching a few people off guard when it gets overextended like that in one sentiment, when sentiment gets overextended like that in one direction. In terms of the general situation in Iraq, oil prices have reacted so far to the potential or threat of a supply shock, but that shock has not actually taken place yet. Even though the militants are committing more violence, making more progress into the country towards the capital in Baghdad and threatening the stability of the government, all of it so far is just a threat. But so far, there has been no actual decrease in the supply of oil out of Iraq. And until that looks a lot more likely to take place, I think we could see some more subdued action in the price of oil and the next leg higher may need that extra genuine supply problems from Iraq to take place before we can see that take place. So I want to look at the chart now just to see where some of the barriers for any corrections in the price could take place. Now, this is a weekly chart for the price of Brent crude oil. And as you can see, there's been a long-term triangle which has been restricting the price for a long time now. But the week before last, we saw that big breakout. It hit 113. The resistance from these two prior peaks inside the triangle and then last week finally broke higher and pushed towards 116. But what you can see is that there's another technical barrier from a trend line connecting the two highs from the early stages of 2013 and sort of mid-2013. And so for the moment, that's what's caused this slight pullback in price for the moment. And so until that barrier can be surpassed around 116, it looks like we could see some support coming back in at 113. The resistance has turned back to support on a pullback to that area. And we could see some demand coming back into the price. And if we do see some escalation in the violence and a genuine threat to the price of oil, that may be the key to getting through that 116 barrier. Thank you very much for watching today's CMC Commodity Snapshot. My name's Jasper Lawler, and good luck trading.