Crude Oil Markets Continue to See Hesitation

WTI Crude Oil

The West Texas Intermediate Crude Oil market has tried to rally again during the trading session on Monday but has given back the gains as we have seen during the previous two sessions. This tells me that the market simply is not ready to go higher quite yet, and it is also worth noting that we have and OPEC+ meeting soon, and that of course has the market perhaps waiting to see what everybody has to say. That being said, the market is likely to continue to be noisy, but at the end of the day would not surprise me at all to see a pullback as we had gotten so far ahead of ourselves.

Crude Oil Video 01.02.22

Brent

Brent markets of course look very much the same, but also have the added pressure of the $90 level just above being such an important psychological barrier. That barrier will continue to attract a lot of attention, if for no other reason than it is a popular options barrier. Nonetheless, the pullback will be short-lived as there is still a lot of demand for crude oil out there, and quite frankly OPEC has not been able to meet some of its standards. With that in mind, I like buying dips, but I would like to see a move of at least a couple of dollars so that I can find some value.

On the other hand, if these markets break above the last couple of shooting stars, that would obviously be a very bullish sign and you would have to pay close attention to it. In that scenario, gold becomes a “buy-and-hold situation.”

For a look at all of today’s economic events, check out our economic calendar.