WTI Crude Oil
The WTI Crude Oil market rallied yet again on Thursday as we continue to see the mass of bullish pressure pick up. I think that the market then goes towards the $75 level given enough time, as it is a large, round, psychologically significant level, and it is also an area where we have seen significant reactions on longer-term charts, so I think that it’s only a matter of time before we do get a pullback. However, I think that the market will continue to find plenty of reasons to go higher in the short term, and as we are in the typically higher pricing season, it makes sense that we would continue to be buyers.
The $72 level underneath is support now, and I think if we break down below there we could drop down to the $70 level, but right now it looks as if the buyers have no interest in letting this market go, and I think we will continue to see a “by on the dips” mentality.
Brent
As I record this, Brent is breaking above the highs of the week, and it now looks as if we are ready to go towards the $80 level. The market continues to be very noisy, but obviously very bullish as we have concerns about the Iranian oil supply not entering the market, and of course we are in the cyclical bullish time of year anyway.