WTI Crude Oil

The WTI Crude Oil market has been very noisy during trading on Monday, initially dipping towards the $70 level only to turn around and rally again. OPEC says it expects global demand to grow going forward, and that put a little bit of bullish pressure into the market. The $70 level now looks likely to offer support, and I anticipate that the market will continue to find buyers closer to that level. I recognize the $72 level as initial resistance, but only because it is the most recent high. I think we will break above that level and go looking towards the $72.50 level next. Beyond that, the market could very easily go to the $75 level. I believe the $70 level is the beginning of significant support down to at least the $69 level in the short-term.

Natural Gas

Natural gas markets rallied during the day as well, reaching towards the $2.828 level. The market is trying to break out to the upside, meaning that we could make a run towards $2.90, and then eventually $3.00 after that. I anticipate that the sellers would come back closer to that level, or at the first signs of exhaustion as this market must certainly is oversupplied longer term. In the short-term though, we do have a little bit of demand in the market, and I think that we will continue to see the buyers jump in as natural gas is now going to be used to cool overheated homes. I believe at this point, if we break down below the $2.78 level, that would be extraordinarily negative, sending the market down to the $2.70 level rather quickly. However, things look bullish in the short term, so I suspect that we will get a move higher.