The West Texas Intermediate Crude Oil Market initially pulled back a bit, only to turn around and show signs of strength again. At this point in time, the market is likely to break out and go much higher, perhaps reaching towards the $70 level eventually. There is a lot of noise in general, but the “reopening trade” continues to be a major theme that a lot of traders are playing into, and of course that means more demand for crude oil. Furthermore, OPEC and British Petroleum both have suggested that there should be more demand coming and therefore it should continue to push prices higher given enough time. And beyond that, the US dollar falling will continue to be a bit of a tailwind for this market.
Brent market have broken higher as well, and it looks like we are going to go looking towards the $70 level. If we can break above the $70 level, then it is likely that we could go looking towards the $72.50 level. The ascending triangle is still intact, but you could even make this a bit of an ascending triangle that we could pay close attention to as well. Either way, I do not have any scenario in which I am willing to sell anytime soon, so I think what we are looking at is a scenario where buying on the dips should continue to be the way going forward. With this in mind, I think there should be more value hunters out there than anything else.