WTI oil has pulled back a bit over the course of Friday’s session, but continues to draw buyers on dips. The market has found enough support in the $ 72 region to turn the situation around as we continue to see many buyers as the market appears to reach a value-offering zone. If we manage to break above the top of the candle, then it is possible that the market will head towards the $ 74 level and then eventually to the $ 75 level.
We have seen significant market momentum recently, especially with the 50-day average curving up and in general I think it is the good projections on demand that is coming into play, especially now that OPEC has said there will be an increase until End of the year.
Brent markets have also pulled back a bit, but have turned around showing signs of life again. Ultimately, this is a market that is trying to find its way to the $ 80 level, but it may take some time to get there. The $ 72 level below will offer support as it coincides with the downtrend line and the 50-day mean is ready to break above there. All things being equal, this is a very bullish market and I think it is only a matter of time before we go much higher. That being the case, the market is likely to attract a lot of value hunters given enough time, even though the US dollar has continued to strengthen. Right now, inflation is also a potential market driver.
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This article was originally posted on FX Empire