WTI Crude Oil
The WTI Crude Oil market has done very little during the trading session on Thursday, as we continue to hover above the psychologically important $65 level. Because of this, the market looks very likely to continue to be range bound over the next 24 hours as it is difficult to imagine a lot of volume coming in just ahead of the weekend. I think the $65 level underneath will be significant support, so if we can break down below that level it would indeed be a very important milestone to overcome. With this in mind, I would be an Advent seller underneath there. Otherwise, if we get some type of rally I would wait for signs of exhaustion to start shorting again.
Brent
Brent markets were choppy as well during the trading session, as we continue to hover around the $71 level overall. This is a market that obviously has a lot of digesting to do, as oil markets got bad inventory news on Thursday, and of course there are concerns about global growth and demand. Longer-term, oil markets are probably very bullish but I also recognize that we are looking at a short-term chart here, that shows the market needs to take a breather. If we break down below the $70 level, the Brent market should unwind quite rapidly. Otherwise, I suspect a bounce towards the $72 level could be in the cards, but I believe ultimately it will take quite a bit to make that happen. Any US dollar strength will probably turn this market back down to lower levels as well.