Crude Oil Price Analysis – Crude Bounces Slightly to Open Friday Session

WTI and Brent Crude Oil

The light sweet crude oil market pulled back just a touch early in the hours of Friday, turned around to show signs of life, and tested the $60 level. The area between $60 and $62 is a significant amount of resistance, so any signs of exhaustion, I think, sellers come back into.

Keep in mind that there are concerns that over the weekend, perhaps there might be strikes against Iran, so I think some of the people who sold oil are probably now closing out their positions. This is probably something to think about, as the unknown of the weekend will continue to be a major concern, as it will not give traders time to react to the headlines.

Brent Looks Very Much the Same

Brent looks very much the same; it has rallied a bit and now looks as if it is threatening the $65 level. The 200-day EMA is sitting just above, and therefore, I think if we bounce a bit here and show signs of exhaustion, that probably has people selling again in this market.

Keep in mind, this weekend we’re all waiting to see whether or not the United States and perhaps even Israel strike the Iranians. If they do that will have oil jumping probably right at the first signs of markets on Sunday opening up, but I don’t think it’s sustainable unless for some reason they hit the oil infrastructure, which they showed last summer that they clearly aren’t interested in doing. So, any pop at this point I’m still looking at with suspicion.

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