Crude Oil Markets Break Out

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken to the upside and has cleared the $90 level. The $90 level of course is a large, round, psychologically significant figure, and now that we have sliced through that suggests that we are ready to go much higher. All things been equal, if we do pull back from here it is likely that the $90 level will now become the “floor the market.” With this being the case, the market is likely to continue to see plenty of buyers looking for value due to the fact that the demand for oil was only going to pick up over the long haul. The reopening trade continues to be something that people pay attention to, especially as OPEC is struggling to fulfill quotas.

Crude Oil Video 07.02.22

Brent

Brent markets have also rallied rather significantly to reach above the $93 level. The $90 level underneath should be supportive as well over at this market, and at this point in time it is likely that we will continue to see a “buy on the dips” type of situation. The market has formed an ascending triangle underneath the $90 level, so now we have broken out to push the markets much higher and fulfill the targeted. With this being the case, the market is more likely than not going to continue finding buyers.

If we were to break down below the $85 level, it would change the entire trend, but we are nowhere near that and quite frankly I just do not see this market doing anything other than exploding to the upside. Volatility will continue, but it will be bullish volatility.

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