Target:87 or more
This is a counter trend trade, which means reward/risk is very good but low probability.
Xom is at a strong support level.
Oil is at a low price level. Could oil goes lower? yes. but if lower than $45 many drillers/producers loose money. -> reduce supply.
Jerry Brown suggest 42% gas tax hike and $65 registration increase in California. Many blue states already increase gas tax. AAA projects the national average for a gallon of gasoline to increase 40 cents this summer. -> reduce demand.
(Meanwhile the media tie gas / oil price to Saudi Arabia.)
What makes price move? Supply and Demand (translate into chart support & resistance)
Oil is at a strong support level (~45usd).