Crude Oil Markets Pull Back

WTI Crude Oil

The West Texas Intermediate Crude Oil market has tried to break above the $85 level but could not do so with any type of confirmation. With this, it looks like we are going to pull back a bit and perhaps try to find support, which could be as low as $80.

Ultimately, crude oil has been one of the better performers as of late, but ultimately this is a market that has gotten a little ahead of itself so do not be surprised at all to see a little bit of a pullback. That pullback should offer value as we continue to see issues with production. That being said, there are a lot of fear-based trades out there and a lot of US dollar buying which of course does not help the situation.

Crude Oil Video 25.01.22

Brent

Brent markets of course followed the same issue, as we have reached down towards the $85 level. $85 level has been resistance previously, so it should now be support. Ultimately, this is a market that looks like it is ready to go higher. Ultimately, I think the market does go looking towards the $90 level above. If we break down below the $85 level, then it is likely that we could go looking towards $82.50 level. In general, this is a market that breaking out to a fresh, new high of course signify strength, so I look at this as a situation where you are buying dips in order to find a little bit of value. We had gotten a bit overextended, so this is not a huge surprise to see that we have hesitated.

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