The BTI Crude Oil
The WTI Crude Oil markets continue to go sideways during the session on Friday, as we have seen a bit of choppiness over the last couple of days. However, I believe that Brent markets are showing signs of going much higher, and I think it’s only a matter of time before we see a move in the market that will of course translate to a move in this market. Currently, the $67 level looks to be massively supportive, and I think that the market participants will continue to respect the $67 level. However, the US dollar could have its say as well, as interest rates continue to climb. Overall, to me it looks as if the oil markets are going to grind higher.
Brent
Brent markets went sideways during most of the session on Friday, as we continue to press against the $75 level. If we can clear the $75 level, the market is likely to go much higher, perhaps reaching towards the $77.50 level after that. I think that in the short term, the $74 level will offer a significant amount of support, and I think that short-term pullbacks are likely to occur. However, that’s probably going to be a situation where buyers will come in and trying to pick up value and build up enough momentum to finally break out. If we were to break down below the $73 level, it’s likely that we will pull back even further, but it seems unlikely. Keep in mind that the markets look strong longer term, so I anticipate that moving to the upside is probably the most likely scenario.