Crude Oil Markets Find Support After Initial Fall

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back during the trading session on Friday to find buyers underneath and show signs of life. That being the case, I do think it is probably only a matter of time before we turn around and go higher, so we break above the top of the candlestick, the market then goes looking towards the $95 level. Given enough time, I do believe that the oil markets will focus on the idea of supply disruptions over the last year or so, and of course the Russia/Ukraine issues.

Crude Oil Video 21.02.22

Brent

Brent markets also found buyers underneath near the $90 level. That being said, the market does tend to pay close attention to these $10 levels, and as a result $90 will course attract money. If we can break above the top of the candlestick, then it is likely that we go looking towards the $97 level. On the other in, we turn around and break down below the $90 level, it is possible that we could break down but there is a lot of noise underneath that level could offer plenty of buyers. Furthermore, we have the 50 day EMA racing towards that area as well so I think pullbacks will continue to offer buyers.

As the entire world is reopening at the same time, there is a lot of concern when it comes to the supply, as it will be overwhelmed by the massive demand going forward. I do believe that Brent probably goes looking towards the $100 level over the longer term.

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