The West Texas Intermediate Crude Oil market has been a bit of a mess this week, as prices have fluctuated between rising, falling, rising, and falling. At this time, crude oil is the only commodity that appears to be attempting to survive, making it the “last man standing.” As the majority of commodities prices continue to decline, I believe that crude oil will eventually follow suit. The $100 level will determine where we go next, but you should probably wait until we either achieve it or break above the previous week’s weekly candlestick. In any case, it is generally best to leave things alone.
Despite the fact that it’s a green candlestick, Brent markets have also demonstrated a lack of optimism. At this time, the market appears to be attempting to break through the underlying uptrend line, and if that occurs, it is quite probable that we will continue to have noise and uncertainty. The breach of the uptrend line allows Brent to potentially reach $100, where I believe the trend is defined. Alternately, if we break over the top of both this week’s and the previous week’s candlesticks, Brent can resume its climb toward the highs. Bear in mind that a global recession will reduce crude oil consumption, and that may be what we are attempting to price at the time.
