Crude Oil Markets Give Up Early Gains

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading week, as we have seen a lot of fear when it comes to oil due to the Russia/Ukraine issue. Furthermore, we also have the sanctions on the Russian Central Bank, which could make some issues when it comes to oil distribution. Having said that, the market will more than likely have to come to grips with the fact that there is a lot of uncertainty out there, so I think that even though we have given back quite a bit of the gains as we approached the $100, this is still going to be a “buy on the dips” type of market going forward. The 50 day EMA is racing towards the $90 level, so it does suggest that could be a bit of a floor.

Crude Oil Video 01.03.22

Brent

Brent markets also shot higher during the trading session, up roughly 7% almost immediately. That being said, we have given back quite a bit of the gains near the $100 level, but it is also worth noting that the $95 level underneath should offer support. Brent will be much more influenced by what goes on in Europe than WTI well, so at this point in time it is likely that we will continue to see more of a “buy on the dips” attitude over here as well. If we can break above the couple of shooting stars that pierced the $100 level, then I think we could go much higher, which is what most people expect. This will be especially true if things get even worse between the Russians and the Ukrainians as Russia provides roughly 10% of the world’s oil supply.

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