What’s the price level exit for the black gold?

The new front month contract (as we switched now to Dec’21) for WTI Crude Oil futures closed the week at $82 per barrel on Friday (Oct. 15th).

Fundamentally, nothing seems to be able to stop, in the short term, the surge in crude 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 US dollar may signify a more marked optimism of the markets in the perspectives of a gradual recovery of the global economy.

OPEC+ remains stuck in its timetable for the gradual increase in production, thus tightening a market which suffers from insufficient supply.

If a return in global demand appears to be faster than that of supply (as we are getting close to the winter season and its cooler temperatures), more shipping and other requirements are needed.

WTI Crude Oil (CLZ21) Futures (December contract, daily chart)

In summary, in times of uncertainty, we are wondering where the oil market is going to drive us with such directional moves. So far, it’s in the fast lane on the 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 the psychological $100 exit? For now, let’s just enjoy the road and let us know what you think!

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Thank you.
Sebastien Bischeri

Oil & Gas Trading Strategist
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The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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