Crude Oil Markets Continue to Consolidate

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the course of the trading session on Wednesday as we continue to wait EIA numbers and of course we have to worry about the Ukrainian border crisis, because of course Russia is a major supplier of crude oil. Beyond that, we have relatively tight supply and have not seen a lot of expansion when it comes to drilling. In other words, we should continue to go much higher, especially if the US dollar were to suddenly lose strength, although I do not necessarily see that happening. In general, this is a market that has been consolidating between $87.50 and $95 above. I think that continues to be the case bit more of an emphasis on the upside.

Crude Oil Video 24.02.22

Brent

Brent markets have also rallied a bit during the trading session as well, as we have broken towards the $95 level. That being said, the market is likely to see a lot of noise, so I think it is probably only a matter of time before we pull back, only to find buyers yet again. Ultimately, I think the $90 level offers a massive support, so I will continue to play this market through that prism. It is only a matter of time before Brent hits the $100 level, and perhaps even higher than that. That will almost be a given if the Russians do in fact invade Ukraine. I do not necessarily base my trades on that anyway, simply due to the fact that we were already bullish.

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