WTI Crude Oil
The West Texas Intermediate Crude Oil market has gone back and forth during the course of the trading session on Wednesday, as we are hanging around the 50 day EMA. The $80 level is sitting just above and offering resistance, so I think at this point it makes a certain amount of sense that this market may take a bit of a pause. Furthermore, the Thursday session is Thanksgiving in the United States, so therefore it is likely that we will see very little movement during the limited electronic trading. That being said, the $75 level underneath is massive support. Because of this, I think what we are going to see is more sideways action than anything else.
Crude Oil Video 25.11.21
Brent Crude Oil
Brent also has been relatively quiet during the session on Wednesday, as we are hanging around the $82.50 level. We are above the 50 day EMA in this contract, so I do think that there are a certain amount of buyers out there willing to pick up value. If we can break out above the $83 level, then it opens up a move to the $85 level. At this juncture, I believe that dips continue to be buying opportunities, but obviously we will have some liquidity issues over the next couple of days. That being said, Brent has more of an opportunity to move than WTI, simply because it is more of a global grade.
I anticipate the market will probably see more of a “buy on the dips” attitude over the next several sessions, and I certainly would have no interest in shorting crude oil after the reaction to the SPR release has been so bullish.
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