Crude Oil slightly positive on muted Friday session

WTI Crude Oil

The WTI Crude Oil market has been very choppy during trading on Friday, reaching towards the $67.50 level, pulling back, and then testing it again. I think that a lot of bullish momentum is still underneath, and that the $66 level should offer a significant amount of support. Ultimately, this is a market that could go as high as $68 in the short term, followed by $70 which of course is a large, round, psychologically significant figure. Because of this, I believe that buying in small bits and pieces on these dips will continue to pay off for those who are nimble enough.

Brent

Brent market participants were very much the same during the day, using the $71.75 level as a base, and the $73 level as resistance. I think ultimately, we will break out to the upside, and go looking towards the $75 level as it is a psychologically important level. I think that buying these dips continues to be the best way to play the market, as we continue to see a lot of noise. The $70 level underneath is a major “floor”, just as the uptrend line which is below there will be. While I do think that longer-term we have major issues with an oversupply of crude oil, I also recognize that the short-term momentum is most certainly to the upside in this market and it would be difficult to fight that.

Crude Oil Inventories Video 16.04.18