WTI Crude Oil

The WTI Crude Oil market rallied initially during the trading session on Friday, reaching towards the $59 level, but pulling back later in the day. With the Americans away for the Thanksgiving holiday, and liquidity being an issue, crude oil markets were very noisy. I think that a pullback is likely short-term, but longer-term it looks very likely that we are going to go towards the $60 handle above. The market has been bullish for some time, so shorting is all but impossible, especially considering that the Saudi Arabian and Iranian governments keep saber rattling. Because of this, I think there is going to be a certain amount of bullish pressure on crude oil and the short-term, or at least until things calm down. Longer-term, the Americans will start drilling again and in large quantity. That of course will be negative, but I believe that technically speaking, we almost have to go to the $60 level to test it.

Crude Oil Inventories Video 27.11.17

Brent

Brent markets continue to be volatile, initially rallying towards the $63.80 level, but then pulling back to the $63.25 level. In general, the market should continue to go much higher, as we have had such a bullish move, and of course there is a certain amount of psychological attraction to the $65 level above. $64 has been resistive as well, so I think the one thing you can count on is choppiness in this market but obviously with the problems in the Middle East, I believe that there is going to be a certain amount of tension in this market, and possibly bullish pressure as a result. The $62.50 level underneath should continue to be support as well. In general, I think the noise in his continues but I do favor the upside for short bursts.

This article was originally posted on FX Empire

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