For oil, this is a three-digit zone that the market rarely sees: for most of recent years, Brent lived below $100, and every move above one hundred meant a sharp surge in volatility rather than a smooth trend.
A move toward $112 is no longer intraday noise. Such levels change calculations across several dimensions at once: fuel inflation, commodity exporters' currencies, oil and gas sector stocks, and transport companies for which kerosene and diesel are the main cost item.
What matters most for a trader is this: oil moves in jerks when breaking round levels, the spread widens, and stops get hit faster than usual on a thin order book. This is one of those instruments where the cost of a mistake in position size is felt instantly.
Next, the market will be watching for consolidation above $112: holding this zone versus a pullback below it paint a completely different volatility picture for the following sessions.
Did you watch oil and not touch it?
Oil breaking one hundred is a move visible to the naked eye, but touching it on a small account is almost pointless: one barrel of movement produces an amount you don't feel, and the stop on such an instrument has to be wide. In prop trading, the trading notional is provided by the company: you pay for a test account, pass it according to the rules, and trade its volume for a share of the profit. Oil doesn't stay in the three-digit zone for long — the mechanics are worth understanding before the next surge.