Crude Oil Analysis – Oil Continues to Move on Words

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gapped a little bit lower to kick off the session, but turned around to show signs of stability. Mainly as the Americans have suggested that we’re close to a deal and the Iranians, of course, have suggested that’s not true and that they will not deal with the Americans as long as they continue to threaten them. With this, it’s the same push-and-pull nonsensical behavior that we’ve had for a while. I don’t see how that ends.

From a technical analysis standpoint, the $70 level below is support. The 200-day EMA at the $79 region probably offers a little bit of resistance, but let’s be honest here, the technicals only have so much to say when we’ve got this constant media war going on between the Americans and the Iranians.

Brent Crude Oil Technical Analysis

The Brent markets have rallied to show stability as well, and at this point in time, it looks as if they are trying to recover. It’ll be interesting to see if we can get to the $85 level, which is a bit of a fulcrum for price. If we break down from here, the $75 level would have a certain amount of psychology attached to it as it is a large number, but the real structural support is seen at the $70 level.

Ultimately, again, this is a situation where we’re just waiting to see what the mullahs say in Iran or what Trump says in DC or those types of things. That really is what’s driving the oil market right now. It’s got nothing to do with anything other than that, it seems. So as long as that’s the case, it’s going to be a very noisy market.

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