Crude Oil Price Analysis – Brent Eyes $100 Resistance as Middle East War Escalates

WTI Crude Oil Technical Analysis

The Light Sweet crude oil market has rallied significantly during the early part of the trading session here on Wednesday, as we continue to see conflict in the Middle East, which pretty much assures that there are going to be problems.

This market has reached towards the $90 level before pulling back slightly. It is a little overextended, but really, at this point, as long as the Strait of Hormuz is closed, it is going to put pressure on the markets. Short-term pullbacks are possible, and quite frankly, I would think probable, but the way the oil markets have been behaving this year, it does seem to get rather impulsive rather quickly.

A breakdown below the 200-day EMA could signify a turn, but at this point, we really need to see some type of change in the overall attitude between Washington and Tehran to make a lasting change, which isn’t going to happen. So, I think this volatility is just a fact of life.

Brent Crude Oil Technical Analysis

Brent markets are just over $94, and they are strong again during the trading session. And again, it’s the same situation. It’s just a matter of not having enough supply. The Strategic Petroleum Reserve in the United States is supposedly within a few weeks of running out. That’ll be interesting to see how that plays out. And other countries, unfortunately, are in a much worse position. So sooner or later, the resolution has to come. What that is, nobody knows.

But as things stand right now, it looks like the Brent market is being priced in for some type of catastrophe. The $100 level looms large above as resistance. The 50-day EMA underneath looms large as support. This market remains a reactive one to headlines.

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