WTI Crude Oil
The WTI Crude Oil market was slightly negative during the early hours of the trading session on Tuesday, as we continue to dance around the $75 level. That of course has a certain amount of psychological support built into it, but perhaps we have gotten ahead of ourselves. If the oil markets pull back, I anticipate that there will be a lot of buyers down near the $74 level, an area that was previously resistive and has yet to be retested. It has been a very volatile session, so keep in mind that the normal choppiness continues.
Brent
Brent markets also when sideways initially during the day with a slightly negative bias as we continue to struggle with the idea of breaking above the $85 handle. By doing so, I think this shows that the market certainly has a natural upward proclivity, but I think we are simply digesting the gains from the last couple of sessions. If we can break to a fresh, new high, then I think the Brent market goes looking towards the $90 level next which is the next psychological barrier. There are a lot of pundits out there looking for $100 barrel pricing, and quite frankly there’s nothing on this chart to suggest it can’t happen. $83 is essentially the “floor” right now, so it’s not until we break down below there that I consider selling this contract. Buying on dips to pick up a little bit of value makes a lot of sense.