Crude Oil tests significant levels during Thursday session

Crude oil markets rallied again on Thursday, as we have tested significant levels in both grades that we follow. Because of this, it looks as if this will be a “by on the dips” situation, and I think it’s only a matter time before we not only reach those levels again, but perhaps breakout even further to the upside. · FX Empire

Christopher Lewis

Updated Thu, May 17, 2018, 11:00 PM

WTI Crude Oil

The WTI Crude Oil market break above the $72 level during the session on Thursday but have pulled back a bit to fall underneath that vital level. Nonetheless, we are looking at a market that has recently made a “higher high”, and it’s likely that we will continue to find buyers jump into this market based upon the momentum. Beyond that, you should keep in mind that the situation with Iran is going to take some oil off the market, and that should pull back a bit of supply. We also have a lot of tension in the Middle East overall, and that should continue to have hedge funds jumping in to pick up crude oil when it falls. I believe currently we see a massive “floor” at the $70 level.

Brent

Brent markets rallied as well, reaching towards the $80 level, an area that of course has a certain amount of psychological significance. That’s an area that has had enough sellers jump into the market to pullback, but as I record this we are at the $79.50 level. That’s an area that was the reason high in the market, so I think that this area should cause support. I think some type of bounce from this area is likely to occur, extending down to at least the $79 level. If we can eventually break above the $80 handle, I think that the market can continue to go much higher.