U.S. Markets close in 5 hrs 58 mins

Crude Oil Markets Continue to Rip Higher

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

WTI Crude Oil

The West Texas Intermediate Crude Oil market continues to go higher as we have seen a significant drawdown during the latest EIA report. That being said, the US dollar is also getting hammered so it does make quite a bit of sense that we would see oil continue to go higher due to the fact that the US dollar fell. Ultimately, this is a market that I think is still a “buy on the dips” type of market, as we are now clearly well above the $80 level which has a certain amount of psychology attached to it. That being said, the market is very likely to be overextended, and at this point in time I will pullback is probably the best thing that we can see.

Crude Oil Video 13.01.22

Brent

Brent markets have rallied as well, reaching towards the 50 day EMA. All things being equal, this is a market that I think continues to see a lot of support underneath, especially near the $81 level where we have launched from for the most recent parabolic move. That being said, this is a market that I think continues to see buyers on dips and I think that the 50 day EMA is curling higher and reaching towards the $80 level as well. All things being equal, this is a market that looks as if it is trying to go to the upside and therefore, I think it is only a matter of time before we hit that recent highs near the $86 level. All things being equal, this is a market that is overdone so I would like to see value hunters.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: