Crude Oil Markets Cool Off

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen rather hard during the trading session on Tuesday as Russian soldiers have pulled back from the Ukrainian border. This has eased a lot of attention, and therefore oil supply disruption is less of a concern. That being said, we are still very much in an uptrend so I think a day or two of a pullback might be coming. Longer-term, I still believe that we go higher so therefore am looking for a sign of support that I can take advantage of in this environment. The $90 level underneath is an area where we may see people stepping back into the marketplace to take advantage of the longer-term trend. After that, we could be looking at a move towards $87.50 where there is even more support.

Crude Oil Video 16.02.22

Brent

Brent markets have fallen a bit during the trading session as well, as would be expected. The $90 level underneath should be supportive, and I think that we may get a little bit of a pullback over the next day or two, only to continue the longer-term uptrend. Keep in mind that all it takes is some type of negative headline coming out of the eastern part of the Ukraine to send this market right back into the stratosphere.

The US dollar strengthening may come into play given enough time as well, so certainly we should pay attention to whether or not the dollar starts to take off, unless of course it is in reaction to Russian aggression, which would obviously have an influence for this market to go higher that far outstrips any type of currency headwinds.

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