 Hello, welcome to this week's CMC Markets Commodity Snapshot with myself, Jasper Lawler. We're going to look at oil markets just because they have been breaking out higher recently. Particularly, we're looking at WTI and it's just reached $58 per barrel and not coincidentally, the US dollar is breaking down and we've seen one of the slowest builds in US inventories, oil inventories that we've seen in several months. Now, when it comes to oil markets, we've discussed this a few times really. These are the drivers that we're looking at. The Middle East has impacts from now and then and obviously, there's been some tensions over there and that will drive short-term prices. But really, Saudi Arabia, the major oil producer in the Middle East, has held pretty firm producing oil at a pretty consistent rate. So that's not really been a variable. What has been a variable and what can change is US oil production. Now all prices have been basing out for the last couple of months, even as US oil inventories data has been increasing. But obviously, markets are looking ahead three to six months and now as markets have based, oil inventories have began to slow and now as of last week, we just saw 1.9 million barrels added to US crude stocks. Now that's still the 15th consecutive week of gains, some of the largest seen on record, but it does just get us closer to zero and that much closer to possibly going negative. And that has corresponded with oil prices breaking out. And when we look at the chart in a minute, you'll see that we're pretty much in uptrend territory. It is worth mentioning that the US dollar did fall generally across the board on weaker GDP data. So we've seen corresponding breakouts in the Euro, the British pound, even gold and silver looking like possible breakouts. So this is not an oil unique move, it's very much correlated to the US dollar. And so that's why we have to be cautious. The inventories have not actually starting dropping yet. Production has not actually slowed yet in the US and so there's still risk of a recovery and that's why we're going to look at both daily and weekly charts. Now in front of us, we have the daily candlestick chart for West Texas crude oil. Now this is a pattern that we've been talking about for a few weeks now and it's just about reached its objective. So this was a falling wedge pattern. The objective was about $58.50. We've hit above $58 so we're almost there within a few cents of hitting the objective of this pattern based off of the height being projected from the breakout area. Now there's a few things to consider here. Now you can see according to these moving averages, both the 21 and 55 day moving average, we're in uptrend territory now. We've broken the highs that we saw in March. And so we're making higher highs, higher lows. Now what we have to look at is if we do flip over to the weekly chart, we can see that yes we've seen a strong surge in prices but still a big decline in oil prices and we're still generally in the context of a downward move in oil prices. So we have to be a bit cautious here. We've moved above the 21 week SMA which is significant, we're still significantly below the 55 week. And so there is room for oil prices to turn lower and one consideration is that right now just around current levels, we're at matching some of the peaks that we saw in December last year and that corresponds with a 23.6% Fibonacci retracement of this whole decline in oil prices. So this is an important level, it's this objective from this pattern, it's these previous highs, it's the 23.6. So room for a correction from here, should we get through it then logically the next step would be the 38.2% retracement and that's around $67 per barrel. So that's it for this week's CMC Markets Commodity Snapshot. We were looking at West Texas crude oil. Now we've had a big surge high, we've broken higher, we look like we're into an uptrend but there's a few barriers ahead, we're possibly into correction zone where we could see a correction. So let's see if that follows us through right down to those lows at 42 or if we can make a higher low and push higher in towards perhaps even this $67 per barrel.