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Christopher Lewis
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Brent WTI crude oil
Brent WTI crude oil

WTI Crude Oil

The West Texas Intermediate Crude Oil market has got absolutely crushed during the trading session on Monday as OPEC and its allies have come to a conclusion when it comes to the idea of production increases, adding 400,000 barrels per day, and increasing by that same 400,000 barrels per day every month through the end of the year. This has traders take a look at the idea of oversupply, and of course whether or not the demand will keep up as we continue to see concerns about the economy reopening. At this point, it looks as if we are going to pull back significantly, and I would not be surprised at all to see this move looking towards the $60 level. At this point, I have no interest whatsoever in trying to buy this market until we can recapture the $70 level.

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Crude Oil Video 20.07.21

Brent

The Brent markets of course fell just as hard, slicing through the uptrend line and the 50 day EMA. After that, then we have broken down below the $70 level, which of course is a large, round, psychologically significant figure. Now that we have seen this market break down the way we have, I believe that we will probably go looking towards the 200 day EMA which is closer to the $62.50 level. Ultimately, I think that short-term rallies will be sold into as the market may have gotten ahead of itself and of course we have a lot of Delta variant headlines causing chaos. Has oil peaked? It is probably early to say that, but it certainly has taken a massive it the session.

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