Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Crude Oil Continues to See Buyers
By: Christopher Lewis | March 8, 2024

• Crude oil markets have pulled back a bit during the beginning of the week, only to turn around and show signs of life again. With this being the case, I think you continue to be a bit of a “buy on the dip” trader given enough time.

WTI Crude Oil Weekly Technical Analysis

The WTI crude oil market has initially fell during the week, but it did turn around to show signs of life again, suggesting that perhaps we have a shot at breaking much higher. The $80 level continues to be an area that a lot of people will be closely monitoring and if we can break the above, then I think we have a real shot at going much higher, perhaps as high as $95 over the longer term.

Obviously, there will be several stops along the way, but that is a possibility. Short term pullbacks continue to be buying opportunities and I do not see an opportunity to sell this market any time soon.

Brent Crude Oil Weekly Technical Analysis
Brent markets look very much the same as you would expect with the $84.50 level offering a bit of a barrier. If we can break above that barrier, then we could go much higher. I think at that point in time we’re probably going to be looking at a move towards 95 as well. Now, granted, this is probably a move that will take the better part of spring and summer to complete.

But as far as the technical analysis is concerned, that seems to be where we are heading. Furthermore, we also have to keep in mind that the market participants will look at this through geopolitical tensions, the supply issue, the fact that the Middle East is essentially having a lot of struggles right now, and therefore all of that geopolitical tension could threaten supply.

Beyond that, the cyclical time of year is typically very bullish as people start to drive more, fly more, etc. So, all of this comes together for higher oil prices in the next couple of months and I think both of these charts reflect that.

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