Crude Oil Markets Pull Back a Bit From High Levels

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher during the open on Monday, but then pulled back a bit to show signs of hesitation and of course exhaustion during the day. That being said it was Martin Luther King Jr. Day in the United States, so that had a major influence on volume. Regardless, this was a pullback that needs to happen, and therefore it makes quite a bit of sense that we would see a little bit of a continuation of this. Quite frankly, I would love to see this market pullback towards the $80 level so I could buy it based upon value, but it is also possible that we just simply break out above the $85 level, and then simply become more of a “buy-and-hold” type of situation.

Crude Oil Video 18.01.22

Brent

Brent markets also pulled back a bit, as we are hanging around the $86 level. All things being equal, we are reaching towards the highs yet again, so I think that short-term pullbacks will offer buying opportunities. The $85 level is an area of obvious interest, but it is also possible that we may see this market break down even further, perhaps down to the $82.50 level. Regardless, this is a market that I think is one that you start to buy on dips more than anything else, and the idea of shorting this market is not even a thought at this point in time, nor will it be anytime soon.

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