Crude oil continues to see a lot of noise at the moment, as we are looking for some kind of certainty, but are heading into an uncertain weekend.
WTI Crude Oil
The crude oil market has been very noisy during the last couple of weeks, but ultimately, we have been chopping around in the general vicinity between the $90 level and the $95 level.
The uptrend line continues to come into the picture to offer support, and of course we have a lot of questions going on at the moment, not the least of which will be what happens to the supply situation and the production situation.
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Hurricane in Gulf
The production situation has to deal with the hurricane in the Gulf of Mexico over the weekend. If we continue to see a lot of questions asked about how long it will be offline, 121 rigs have, in fact, been taken offline in the short term. So, with this, it comes down to whether or not they get damaged.
Furthermore, you also have to keep in mind all of the noise coming out of the Middle East. But even if it is quieter over the weekend and we get several rigs damaged by the hurricane, then that causes a little bit of a bump here.
This is a temporary situation, at least we hope, and something that needs to be monitored over the weekend to get a full grasp. As things stand right now, though, we are lined up in an area that has a lot of confluence, an area that I suspect is probably looking for an excuse to get bullish.
We might get it over the weekend, so pay attention. The hammer from the Tuesday session being broken to the downside would be negative and could send this market down to the 200-day EMA, but right now that is not really what is on my radar. I think a little bit of a bounce probably makes more sense than not.
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