WTI Crude Oil
The WTI Crude Oil market initially pulled back on Monday but found enough support at the $63 level to turn around and show signs of strength. I think that there is a significant barrier near the $65 level though, if for no other reason than to notice a large, round, psychologically significant number. Volumes aren’t exactly strong, so I think we are more than likely going to see this market bounce around between the $63 level on the bottom, and the $65 level on the top. If we do break above the $65 level, then the market is probably free to go to the 67.50 level above.
Brent
Brent markets are finding support near the $60.50 level and look likely to reach towards the $70 handle above, which will act very much like the $65 level in the WTI market. Currently, looks as if the $68 level underneath is support, and I think that we should continue to see buyers jump in that market in that area. Volume in the Brent market seems to be a bit stronger than it is in the WTI Crude Oil market, so it could lead the way going forward. Alternately, if we break down below the $6800 level underneath, that would be a very negative sign as well, perhaps breaking down to the $65 level next. Regardless of what happens, I would anticipate a lot of choppiness, and a lack of clarity because of the moving pieces out there, not the least of which is whether OPEC will extend production cuts.
Crude Oil Video 23.01.18
