Crude Oil Markets Continue to See Volatility

WTI Crude Oil

The West Texas Intermediate Crude Oil market has shown signs of hesitation, but then broke down rather significantly early on Friday. Having said that, we have turned around completely to show signs of life again, and therefore it looks likely that we will continue to see buyers jump in on signs of weakness. After all, there are a lot of concerns when it comes to supply, and of course the fire in the pipeline this past week will have done nothing to help the situation.

OPEC has been struggling a bit to fulfill quotas, and of course we have the reopening situation going on around the world. With this being the case, and the fact that we formed a hammer on Friday suggests to me that we have much further to go, and that it is not a matter of if we can hit $90, but when.

Crude Oil Video 24.01.22

Brent

Brent markets have also pulled back initially during the trading session on Friday, but just like the WTI grade, turned around to show signs of life again. By forming a hammer, this shows just how much bullish pressure there is out there, and I think it is probably only a matter of time before we not only break the $90 level, but could go much higher. Any pullback at this point in time continues to be thought of as a value proposition, and therefore need to be looked at through that prism. With this being the case, I think it is probably only a matter of time before we see large orders come back into pick everything up. I have no interest in shorting crude oil markets at the moment.

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