Crude Oil Markets Give Up Early Gains as OPEC Looms Large

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Wednesday to show signs of strength, but then gave back gains in order to show less than impressive momentum. After all, the OPEC members are meeting to decide whether or not they are going to increase production, and that will have a lot to do with where we go next, and therefore I suspect that we probably have a lot of volatility ahead. Unfortunately, during these OPEC meetings, there typically are a lot of “rumors” being thrown around the market manipulating it. Short-term pullback should continue to be buying opportunities though, so that is how I approach this market.

Crude Oil Video 03.02.22

Brent

Brent markets initially broke above the $90 level during the trading session on Wednesday, but then turned around to show signs of exhaustion, as the $90 level of course is a large, round, psychologically significant figure. That being said, there are a couple of hammers sitting just below, so I think we are simply going to go back and forth and therefore we are trying to press up against a major barrier. Obviously, the OPEC meeting will have a lot of influence on what happens next, as the cartel will decide how much they are willing to increase production. Obviously, the more supply in the market, the more likely we are to see lower prices. On the other hand, if we turn around a breakout above the highs for the day, then I think we go much higher. Longer-term, I do think that happens.

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