The WTI Crew Oil markets rose during most of the session on Wednesday, but as you can see the $105 level offered enough resistance to turn things back around and form a shooting star. With that, the market looks as if it’s ready to pull back from here, and as a result I feel that the short-term movement probably will be rather bearish, but at the end of the day I think that there’s plenty of support nearly $102 level II pushes market higher. With that, I am more than willing to lie on a supportive candle below, and believe that eventually the 105 level does give way to the buyers. Going forward, I think that this market will eventually hit the $110 level given enough time.
Don’t forget the Federal Reserve
The Federal Reserve is already stated that they are willing to continue to add stimulus to help the John’s recovery in the United States, and as a result the market could very easily depreciate the value the US dollar. If that’s the case, this could force a run into the commodity markets going forward and as a result we think that this market will more than likely find bullish pressure over and over again.
Selling is impossible at this point in time and I think that ultimately this market will find its “floor” after $100 level, driving petroleum prices all around the world. The light sweet crude market won’t be any different than many of the other markets out there, but at the end of the day I feel that commodities in general or a little bit undervalued although this particular one has been relatively strong. With all that, I believe that ultimately global events in places like the Crimean peninsula will continue to put a little bit of a fear bid into the oil markets as the Russians continue to press the buttons of NATO. With Ukrainian sending troops at ease, it’s very likely that Russian oil will eventually find itself in some type of embargo, and that of course will drive up the demand for other forms of crude. I am very bullish of this market unfortunately.