Crude oil prices rallied to a fresh four year high last week briefly rallying to highs of $71.79 before easing back.

The gains in oil prices came mostly on the developing news about the United States pulling out from the Iran nuclear deal.

The Iran nuclear deal was established in 2015 and included the United States and five other member nations of the U.S. security council.

The decision to leave the agreement sparked discontent among the member nations with the EU’s France, UK and Germany vowing to remain with Iran in the nuclear deal.

Oil prices rallied in expectations that the new sanctions that would be imposed on Iran in the next 180 days could potentially take the nation’s oil supply off the international grid.

President Trump also threatened to impose sanctions on countries that continue to do business with Iran.

This potentially isolates the countries and with the nation being the third largest oil producer among the OPEC nations, the impact of lower crude oil supplies are most likely to be felt worldwide.

From a technical perspective, oil prices posted a modest decline on Friday.

This comes following Thursday’s spinning top pattern. In the near term, we could expect to see oil prices posting fresh highs.

However, this is doubtful given that there hasn’t been a reasonable test of support to the downside.

The only major support level seen comes in at the $66.55 – $66.00 level which previously served as resistance.

To the upside, WTI crude oil prices could be seen testing $76.70 level which marks an unfilled gap from November 2014.

However, the most ideal level to go long on crude oil is from the $66.50 level on a possible correction to the downside.