The West Texas Intermediate Crude Oil market has rallied again during the trading session on Tuesday as we continue to see more money flow into the energy sector, perhaps in a bid to be inflation, says an article published in Finance Yahoo.
Break above the level
At this point in time, it looks as if the market wants to get towards the $74 level, an area that I think will be rather difficult to get beyond, due to the fact that we had seen so much in the way of selling pressure there previously. If we were to break above that level, then obviously crude oil would have much further to go, perhaps reaching towards the $77.50 level next.
Banking on demand
Markets rallied as well, as one would expect. The market continues to see a lot of bullish pressure overall, as traders continue to bank on energy beating inflation. Furthermore, a lot of people are banking on the reopening trade still, and the demand for crude oil. OPEC recently has stated that they anticipate quite a bit of demand for the rest of the year, so that of course also helps the situation. Add to that the fact that the US dollar continues to look rather soft, and you have a situation where you could very easily take off to the upside.
Worth paying attention
Having said that, if we were to take out the $71 level underneath, it is very likely that we could go much lower, as that would be a major breach of that is not my base case scenario, but it is obviously something worth paying attention to.
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