Crude Oil Markets Give Up Panic Bid During the Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has shot higher to reach towards the $100 level but then turned around to show signs of weakness as it looks like the flow of oil will continue. That being the case, the massive shooting star it does of course suggest that we are going to get a bit of a pullback. With the candlestick looking so ominous, I would not be surprised to see a little bit of follow-through to the downside, but I think that ultimately will end up being a buying opportunity.

There is plenty of demand out there as we reopen the economy globally, and therefore it is likely that we will see a “buy on the dips” type of market going forward, with $85 being a potential region of support.

WTI Oil Video 28.02.22

Brent

Brent markets have also tried to rally during the course of the week but gave back gains above the $100 level only to turn around and form a massive shooting star as well. That being said, the $90 level underneath offers a little bit of support, but we may also find the Brent market going down to the $85 level as well, as value hunters will almost certainly come back into the marketplace. Keep in mind that the Brent markets are going to be much more sensitive to the European continent, so it is the first place you will see people pumping the price back up on any concerns about Ukraine or even Russia.

For a look at all of today’s economic events, check out our economic calendar.