Crude Oil Price Outlook – Crude Oil Continues to Rally

WTI/CL Technical Analysis

The light sweet crude oil market initially dipped just a touch after gapping higher, but it has turned around to show signs of life. Now it looks like the breakout is in full effect. With that being said, the market does look a little stretched. So, I think we might have a little bit of time to the upside here, but if we can get a little bit of a pullback, I think you’ve got a situation where plenty of people will be willing to take advantage of this jumping in on FOMO.

We have some work to do, but I think ultimately, we could get to the 200 day EMA. Quite frankly, this is a market that has taken its time breaking out, but there has been a massive accumulation area, and it appears that we are re-accelerating into an inflationary environment via commodities. It’s not just crude oil.

Brent Technical Analysis

The Brent market looks very much the same, although it has not broken above the $68 level. And therefore, it’s not quite on the same footing, but it should be. It will play catch up eventually. And once it breaks out above the $60 level, then the Brent crude market could go looking at the 200 day EMA as well. This is a market that is going to enjoy a positive correlation to the light sweet crude market.

So as it goes, Brent will probably be dragged right along with it. It’ll be interesting to see how this plays out. It certainly looks as if the light sweet crude market is leading the charge, but these two do move in the same direction over the longer term.

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