WTI Crude Oil
The WTI Crude Oil market rallied as it was revealed that the Libyan production was being hampered a bit. However, we are approaching the previous uptrend line, and that should offer a bit of resistance. That resistance could be enough to keep the market down, and I think that it’s only a matter of time before we roll over. This is especially true considering that the markets are getting wind of higher rig counts coming out of the United States. As oil prices have rallied significantly, you are starting to see US producers become a bit more aggressive about pulling it out of the ground.
Brent
Markets have rallied significantly during the trading session as well, reaching towards the $67 level, and then the $67.50 level. I think that as we approach the previous uptrend line, we should see resistance coming back. I think that given enough time we should see sellers come back into this market, and I am looking for signs of exhaustion to start selling again. If the US dollar rallies, that should be enough to push this market lower as well. I believe that the overall oversupply of crude oil will eventually take over the market again, and it’s only a matter of time before the sellers get aggressive. The $70 level above is the “ceiling” in the market from what I see. I have no interest in buying crude oil, least not until we break above that level. In the meantime, I believe $65 will be the target.
Crude Oil Inventories Video 26.02.18
