Light Sweet Crude
The CL contract has a very bullish day to start out the Monday session, but gave back much of the gains as the session wore on. The market managed to puncture the $100 level, but was repelled rapidly once it got there. This has us concerned for the bullishness of this market, and as such we are willing to stay out of the CL contract for the short term. $95 should continue to be very supportive.
Brent markets had a very bullish Monday as the market shot straight up. The “risk on” trade got the markets excited, and as a result the oil market responded in kind. The $110 level still looks resistive, so we think a pullback could be coming. However, we are willing to buy pullbacks at this point until we break below $105.