WTI Crude Oil
The WTI Crude Oil market has rallied again during the day on Tuesday, reaching towards the $75 level. That’s a very bullish sign, and I think that we could get a little bit of a short-term pullback, but quite frankly I think that any dip at this point is going to be thought of as a potential buying opportunity, as it will represent value in a market that cannot stop rallying. There are plenty of concerns about disruption of supply in Libya, Venezuela, and of course I ran. With this, it makes sense that we continue to see strength, even in the face of a strengthening US dollar.
Brent
Brent markets rallied a bit during the trading session on Tuesday but seem to be struggling at the gap from a couple of sessions ago. This is an interesting turn of events as WTI continues to rally significantly, but at the same time Brent has been a bit of a laggard. The crack spread is starting to shrink, and that is a bit of an anomaly. However, I think that overall it’s difficult to sell this market and I think that the $77 level underneath is massive support. It looks as if the $80 level above is going to be massive resistance, and I think that it’s going to take something rather special to break above that level. Between the two markets, I prefer buying WTI.