The $100 level above continues to be a major resistance barrier for traders to pay close attention to.
Crude Oil
The light sweet crude oil market initially fell, only to turn around and bounce on Friday as we see a lot of noisy behavior in general. This is a market that will continue to be extraordinarily noisy and that makes perfect sense, there is a war going on that is directly influencing the flow of crude oil around the world.
That being said, we have a situation where traders are looking at this a little differently in the sense that it is the West Texas Intermediate crude oil and the light sweet crude oil markets that are based out of North America. So while there could be more demand coming out of Europe for American oil, the reality is that exports are somewhat limited. Supply is plentiful in North America itself.
Market Bifurcation and Strategy
Then I think we see quite a bit of bifurcation between the two grades. For example, Brent is presently trading at about $16 more a barrel than the light sweet crude oil market. So, it really comes down to the grade of oil you trade, and you need to be conscientious of what you are trading. US oil, light sweet crude, whatever your broker calls it, is going to be lower priced than Brent or UK oil, for example.
In this market, the $100 level continues to be a major barrier that I think is going to be difficult to break above, but if we do, then it could open up a bit of FOMO to the upside. I do not know that I would short this market. I think it is more or less a buy on the dip but probably do not hang on to the position that is too long type of strategy you will be looking for.