Looks like WTI is heading to $100/bbl

[dan_s]

All of the technicals are flashing "Strong Buy" for oil this morning.
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Is Oil Heading For $100?
By MarketBeat.com (Craig Erlam)(Feb 04, 2022 09:27AM ET)

A winter storm in Texas appears to have been responsible for the latest spike in crude prices, as traders fret about the possibility of outages in the Permian Basin. In such a tight market, that’s more than enough to encourage traders to buy what was the mildest of dips following the OPEC+ meeting earlier this week. < On Wednesday EIA reported that U.S. oil production has declined by 300,000 bpd since the end of December.

With both Brent and WTI now comfortably above $90, it may just be a matter of time until we’re closing in on triple-figures. Another massive blow to households and businesses at a time of surging energy bills and rising interest rates. The squeeze looks set to continue.

It was a volatile day for gold on Thursday, as both the ECB and BoE sent tightening shockwaves throughout the markets sending yields higher and the yellow metal temporary tumbling. The sell-off didn’t last, though, and it once again finds itself above $1,800 and, perhaps, even generating a little momentum.

The key test for any rally will come around $1,815-1,825, which is the 50/61.8 fib region for the pre-Fed highs to post-Fed lows. If gold can find a way through the key retracement zones even after so much more tightening has been priced in from a variety of major central banks, then the rally could have legs. The question is what it indicates.

More safe haven plays? Or fear of even higher inflation and the need for more tightening being priced in? That won’t bode well for risk appetite, that’s for sure.