WTI Crude Oil Technical Analysis
The Light Sweet Crude Oil market has rallied a bit during the early part of the trading session again on Thursday as we are reaching towards the $91 level at the time of analysis. The conflict in the Middle East just isn’t going anywhere, and as long as that’s the case, there are threats to see oil rally rather significantly.
Ultimately, this is a market that is reacting to every headline, and let’s be honest, most headlines aren’t that good for peace. The blocking of the Strait of Hormuz will continue to be something that people watch very closely, and as a result, we will have to pay attention to every headline that involves the conflict.
Brent Technical Analysis
Brent finds itself rapidly approaching the $100 level. This is an area that could cause a little bit of resistance based on option barriers, maybe psychology, and the market memory from where it had been important as both support and resistance recently. So with that being the case, it’s not a huge surprise to see that we have pulled back from there just a touch in early trading.
The market is overbought, but in an environment where we have massive disruptions of the flow of oil, that doesn’t really matter. Overbought markets can become more overbought, and that might be the theme here. Short-term pullbacks almost certainly will be looked at as a potential buying opportunity by a large swath of the trading public, especially if the conflict in the Middle East doesn’t calm down. Clearly, the market is speaking, and it expects a lack of supply.
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