Crude Oil Markets Continue to Push Higher
WTI Crude Oil
The West Texas Intermediate Crude Oil market has found a bit of life after pulling back initially during the trading session on Tuesday. At this point in time, it looks like we are trying to find enough momentum and inertia to continue going higher and looking towards the $90 level. The $90 level of course is an area that will attract a lot of interest due to the fact that it is psychologically important, but really at the end of the day it is just yet another level.
As OPEC is prepared to meet for the Wednesday session, I would anticipate a lot of volatility going forward. The $85 level underneath should offer support, and I do think that the general direction will not change after the meeting based upon so many fundamental factors pointing in the same path.
Crude Oil Video 02.02.22
Brent markets also of course look very bullish as they are sitting just under the $90 level. If and when we get a daily close above that level, then I think this is a market that will probably go much higher, perhaps reaching towards the $100 level over the longer term. That being said, we could get the occasional pullback, but they continue to be buying opportunities. I do not see that changing unless of course OPEC suddenly decides to flood the markets with oil, something that does not seem likely to happen anytime soon. In other words, I do think that oil has much further to go to the upside but keep in mind it might be a bit choppy in the short term.
For a look at all of today’s economic events, check out our economic calendar.