Crude Oil Markets Continue to Look Supported for the Week

WTI Crude Oil

Crude oil markets initially fell during the course of the week, and the West Texas Intermediate Crude Oil market was the leader. The market reached towards the $88 level, only to turn around and show signs of support. Ultimately, this is a market that I think will continue to see a lot of volatility, but I think the pullback was necessary as we had gotten a little bit overbought. That being said, working the froth off of a bullish move like this makes quite a bit of sense, so I do think that every time we pull back, there will be buying opportunities.

Given enough time, it is very likely that the WTI Crude Oil market will go looking towards the $100 level. To the downside, the $87.50 level could offer support, but if we break down below there it is likely that we will retest that $85 handle that had been important previously.

WTI Oil Video 21.02.22

Brent

Brent markets have pulled back towards the crucial $90 level, just as we did during the previous week. Bouncing from there suggest that we now have that as a “hard floor” in the market. Given enough time, it is likely that we go looking towards the $100 level given enough time. All things being equal, this is a market that will continue to go higher based upon the Russians/Ukraine attention, and of course the fact that the entire world is trying to reopen at the same time, which of course will bring demand for crude oil going higher in the foreseeable future. Furthermore, as we have neglected drilling for well over year, we have a lot of work to do.

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