Crude oil slightly positive during Friday session

WTI Crude Oil

The WTI Crude Oil market was slightly positive during Friday trading as we had thin conditions, but it seems as if most traders are willing to pick up little bits and pieces of pullbacks as they offer value. Currently, it looks as if the $64 level is going to offer a bit of support, but the $66.66 level has offered significant resistance. I think we are trying to find enough momentum to break out to the upside eventually, but it is going to be noisy and therefore I think choppy to say the least.

Brent

Brent markets were positive during trading initially but pulled back just a bit. At this point, it looks as if the market is trying to break above the $70 handle, which of course would be bullish and could send this market towards the $71 level. A break above there allows the market to go to the $72.50 level. If we break down below the $68 level, then the market could roll over to the $65 level at that point. I believe that the market participants continue to buy these dips as value, but it also looks as if the bread market will probably underperform the WTI market, as it looks much more bullish over there. If we get a strengthening US dollar, that could put a bit of bearish pressure in this market, as the commodity is obviously priced in that currency.

Crude Oil Inventories Video 02.04.18