Crude oil markets did very little during the trading session on Wednesday, as we essentially sat sideways. The market is awaiting inventory numbers, and of course the fact that the US dollar may or may not have on pricing.
WTI Crude Oil
The WTI Crude Oil market and sideways during the trading session on Wednesday, hanging about the $67.50 level. That’s an area that should offer support, but I think it’s only a matter of time before we break above the $68 level. If we can break above the $60 level, the market more than likely will go to the $69 level, and perhaps trying to reach towards the $70 handle after that, as it is a major round figure. Ultimately, the market should have plenty of support below at the $66 level as well, so I think that it’s only a matter of time before the buyers get involved. The US dollar has been rallying rather significantly though, and I think that the greenback must be followed to see where this market goes.
Brent
Brent markets also have gone sideways in general, but that’s no surprise. It looks as if the $73 level is offering support, and I think that if we can break above the $74 level, the market could go to the $75 level next, which has been resistance in the past, and it is of course an area that has a certain amount of psychological importance. If we do clear that level, we will more than likely go to the $77.50 level, an area that I suspect will cause a lot of attention to be paid to this market. If we pull back in break down below the $73 level, I think there is plenty of support down to at least the $70 level.
