Crude Oil Markets Continue Consolidation

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the course of the trading session on Thursday but still seems to be finding plenty of buyers on the dip. With this being the case, the market is likely to continue to see a lot of back and forth as we await the OPEC decision, but quite frankly regardless of what happens over the next couple of days, I think this is more of a situation where you look for short-term pullbacks in order to pick up bits and pieces of value. The $85 level underneath should be supportive on the pullback, as it had been significant resistance. Even if we break through there, I think the 50 day EMA comes into the picture.

Crude Oil Video 04.02.22

Brent

Brent markets went back and forth as well and seemed to have support right around the $88 level in the short term. Nonetheless, this is a market that is very bullish, and I do think that if we can break above the $90 level, the market could go higher and continue looking towards the $95 level. In general, the markets continue to see a little bit of working off of the parabolic move from before, which is necessary when you have this type of noisy behavior.

Looking at this chart, I do not have any interest in shorting oil anytime soon, especially as the demand is certainly going to be picking up rather quickly as economies around the world continue to reopen.

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