Crude Oil Continues to Race to the Upside

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Wednesday, but then pulled back a bit to fill that gap. At the $85 level, we have seen buyers jump back in and it looks like the oil market is simply going to continue to go straight up in the air. Because of this, I think the market is one that will continue to go much higher, and pullback should be thought of as a bit of a gift, in what looks to be a very explosive move to the upside. Recent drone attacks in the United Arab Emirates and a pipeline fire between Turkey and Iraq has caused major havoc in this market, not to mention the fact that OPEC has been struggling to produce.

Crude Oil Video 20.01.22

Brent

Brent markets have done the same thing, initially taken out to the upside on a gap, pulling back, and then filling the gap in order to take off again. At this point, Brent looks as if it is trying to get to the $90 level, which of course is a large, round, psychologically significant figure that a lot of people will pay close attention to. Ultimately, this is a market that goes much higher, but the $90 level might cause a little bit of a hiccup. On pullbacks, I like the $85 level as a bit of a floor in this market, and if we can get the US dollar selling off, that will also help this market as it is of course priced in those very same US dollars. All things been equal, this is a market that I think goes much higher over the longer term.

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