Outlook: A recovery in crude and products from Thursday’s low brings more confidence that a low may have been put in place. A flush out of length due to concerns about the omicron variant seems to have abated. There is more to learn about omicron but equities and energies are gaining confidence that a deep downturn in demand and economic activity is unlikely. Iranian media suggests nuclear talks will resume Thursday after recent discussions have not been productive.
Continuous Daily WTI: With current trade at 71.80, WTI is back above its 200-day moving average, which becomes support at 70.00. Upward moves now look to next resistance at the 100-day moving average at 74.00. Further upside momentum would target the Black Friday high and 50-day moving average near 78.50.