Crude Oil Markets Have Quiet Open for the Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped lower to kick off the trading session on Monday, but then went back and forth to show signs of noisy behavior. All things being equal, this is a market that looks as if it is a little over extended, but it is most certainly in a strong bullish trend. Because of this, I have no interest in shorting the market, and quite frankly have not even look for selling opportunities. The $90 level should be support, but below there I would be even more interested at the $87.50 level. The markets have been very bullish for some time, but the occasional pullback will be healthy, and it could help propel the market towards the $95 level.

Crude Oil Video 08.02.22

Brent

Brent markets initially tried to rally and breakout during the trading session but ended up pulling back a bit. Because of this, the market looks as if it is ready to pull back just a bit and try to build up a little bit of momentum. Quite frankly, we are a little overextended, but I think at this point in time it is likely that the $90 level will be a bit of a “floor in the market.”

Pay attention to the US dollar, because if we do get a weakening US dollar, that could also propel oil. The world is trading based upon the reopening trade, and of course the fact that OPEC seems to be struggling to fill quotas. As long as you have that situation, I just do not see how oil falls for a significant amount of time.

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