Crude Oil Markets Continue to Run Into Headwinds

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the course of the trading session on Friday, initially making a fresh, new high before giving back gains. That being said, the market is a little stretched at this point and I think we will continue to see hesitation when it comes to the short term, due to the fact that we had gotten so far ahead of ourselves. The $85 level of course is an area where we have seen previous resistance, and of course has a certain amount of psychology attached to it. With this being the case, the market is more likely than not going to continue to find buyers in that general vicinity to take advantage of what has been an extraordinarily bullish move. If a break down below there, then the $82.50 level might be targeted.

Crude Oil Video 31.01.22

Brent

Brent markets also struggled to continue going higher, but at this point in time I think it is obvious that both of these markets are very bullish, especially the Brent market which of course has extended itself even further than the WTI market could the US dollar strengthening does have a certain amount of influence, but at the end of the day there is a massive amount of demand out there that is not being filled and of course we also have the problem with OPEC struggling to produce as much as they said they would. As long as that is going to be the case and the markets are focusing on the fact that economies are reopening, I do believe that oil continues to be a buy.

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