WTI Crude Oil
Oil markets fell significantly during the day reaching down towards the $67 level before bouncing again, only to selloff again. The original selloff had to do with tariffs being applied to Canada and Mexico, which drove up the value of the US dollar. We got an inventory shrinkage later in the day, which of course was bullish. However, the market doesn’t seem like it knows what to do quite yet, as we are trying to settle near the $67 level. With this in mind, it’s probably best to sit on the sidelines and pay attention to the uptrend line underneath.
Brent
Brent markets were spared some of the volatility, at least initially. We eventually fell from a spike to the $79 level, which makes a bit more sin structurally as there is a significant barrier of support just above. I think that the market continues to be very noisy in general, but I also recognize that there is significant support below at the $77 level, so at that area I would be looking for buyers to step in and perhaps try to pick up a little bit of value. If they do, I’m willing to start buying again. Otherwise, break down below the $77 level should have this market looking for the $75 level next.