Crude Oil Forecast: Brent Eyes $100 as Supply Risks Rise

WTI Crude Oil Technical Analysis

The light sweet crude oil market has found itself a little bit positive again during the trading session as traders continue to look at the market through the prism of the conflict and the rhetoric, which of course suggests that things aren’t getting better, at least not anytime soon. With that being the case, traders are likely to continue to be a bit nervous here, as we just cannot anticipate the next headline.

Concerns about crude oil supply persist, and it’s difficult to imagine that markets will calm down. In fact, we can make an argument for a nice big ascending triangle that measures for a potential attempt towards the highs that we had hit back in March. If this keeps up between the United States and Iran, certainly you could make an argument about that being the case and possible outcome.

Brent Crude and the $100 Level

The Brent market looks very much like one that is wanting to test the $100 level based on the momentum that we see during the session. Again, though, this is going to be more headline-driven than anything else, and with that being the case, it’s a bit difficult to really feel comfortable in this market, as the noise is deafening at times.

But again, we are seeing structural higher—or higher lows and an attempt to get to higher highs. If that’s going to be the case, that’s the very definition of an uptrend. So, we’ll see how this plays out, but it looks pretty bullish as well. Ultimately, this is a problem of sticky inflation and uncertainty going forward.

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