Crude Oil Markets Choppy After CPI

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been very noisy during the trading session on Thursday as we are hanging about the $90 level. CPI numbers in the United States came out much hotter than anticipated, and this of course has traders around the world freaking out. If the Federal Reserve does in fact have to tighten much quicker than anticipated, that will drive the value of the US dollar higher, and it works against the value of commodities such as oil. Furthermore, it could slow down demand in general. The question now is whether or not oil can find its momentum again? At this point, I would wait to see an impulsive candlestick to put money to work.

Crude Oil Video 11.02.22

Brent

Brent of course has done the same thing during the day, chopping around as people try to get a handle on inflation. Inflation of course is a major problem for markets, and therefore I think you need to pay close attention to how that starts to play out in America. The US dollar strengthening has worked against the price of crude oil in general, so it does make a certain amount of sense that we would see Brent struggle. The $90 level underneath should be supportive, but at this point in time we still have to see how the reaction plays out over the next couple of days. We are still very much in an uptrend, so I do not have any designs on shorting this market, but it may not be a buyable market in the short term. Be cautious, keep your position size reasonable, and play the game wisely.

For a look at all of today’s economic events, check out our economic calendar.