Crude Oil Is in the Fast Lane, But Where Is It Going? / Commodities / Crude Oil
What’s the price level exit for theblack gold?
The new front month contract (as weswitched now to Dec’21) for WTI Crude Oil futures closed the week at $82 perbarrel on Friday (Oct. 15th).
Fundamentally, nothing seems to be able to stop, in the short term, the surge incrude oil prices which continued to rise on Friday amid concerns over supply,since the WTI hit a new high in almost seven years.
In addition, the slight decline of the USdollar may signify a more marked optimism of the markets in the perspectives ofa gradual recovery of the global economy.
OPEC+ remains stuck in its timetable forthe gradual increase in production, thus tightening a market which suffers frominsufficient supply.
If a return in global demand appears tobe faster than that of supply (as we are getting close to the winter season andits cooler temperatures), more shipping and other requirements are needed.
WTI Crude Oil (CLZ21) Futures (December contract, daily chart)
Insummary, in times of uncertainty, we are wondering where the oil market isgoing to drive us with such directional moves. So far, it’s in the fast lane onthe highway. However, the question now is: which exit is it going to take? $82?Or is it driving with a sufficiently full fuel tank in order to reach thepsychological $100 exit? For now, let’s just enjoy the road and let us knowwhat you think!
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Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
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