Thursday 24 February 2022

Crude oil rides a roller coaster

The WTI Crude Oil market has swung up and down during the trading session on Tuesday as there continues to be a lot of noise associated with everything going on at the Ukrainian border. Overall I think we could say that we are stuck in a range as traders try to figure out where we go from here.

After a very important rise and having entered clear overbought levels, it is normal for us to take a breather, although in the end I suspect that we will go up, perhaps after a series of lateral movements.
Brent

Brent Crude has done the same thing but looks more bullish than WTI and so the $90 level is likely to offer high support which suggests to me that if there is a crash we will at best get to that region. In case we finally get through it there could be a major change in attitude and surely many people will have to re-evaluate the situation completely. I personally think it is much more likely that we will go towards $100 and not only here but also WTI.

Strategy-wise, I think buying after dips is still the most profitable because energy demand is picking up around the world.

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