Crude Oil Markets Hesitate

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the course of the trading session on Monday, as we are trying to price in the latest headlines coming out of the Russia/Ukraine order tensions, which of course makes sense due to the fact that Russia is such a huge exporter of crude oil. All things been equal, it looks as if the $90 level underneath continues offer support. If we can stay above that, then it is obvious that we should see plenty of “buy on the dips” type of attitude, and I just do not see that changing for a longer-term move anytime soon.

Crude Oil Video 15.02.22

Brent

Brent markets of course have acted very much the same as the WTI market, testing the $95 level during the day before giving back some of the gains. Ultimately, you can make an argument that we have broken above the top of the channel, which sometimes means that we are either going to get into a parabolic move, or that we need to pullback in the short term. I think at this point it is difficult to imagine being able to simply jump into this market based upon what you think could happen. The oil markets are bullish, so I look at it this way: if we do get a bit of a pullback, then at the first signs of stabilization I will jump in and start buying. I have no interest in shorting this market anytime soon, although we may get a sudden selloff if Russia does back down from the Ukrainian border.

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