WTI crude oil
The West Texas mid-market crude oil market swung back and forth during Wednesday’s trading session as we lag around the 50-day EMA. The $ 80 level is just above it and offers resistance so I think at this point it makes sense for this market to take a break. Additionally, Thursday’s session is Thanksgiving in the US, so it’s likely we’ll see very little movement during Limited Ecommerce. That being said, the $ 75 level below is massive support. For this reason, I think we’re going to see more sideways action than anything else.
Crude Oil Video 11.25.21
Brent crude oil
Brent was also relatively calm in Wednesday’s session as we remain around the $ 82.50 level. We are above the 50 day EMA in this contract so I think there are a number of buyers willing to go up in value. If we can get past the $ 83 level, that opens a passage to the $ 85 level. At this point, I think the dips continue to be buying opportunities, but we will obviously have some liquidity issues over the next couple of days. That being said, Brent has more opportunities to move than WTI, simply because it’s more of a global note.
I anticipate that the market will likely see more of a ‘buy-on-bearish’ attitude over the next few sessions, and I would certainly have no interest in shorting crude oil after the reaction to the SPR release has gone down. been so bullish.
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