Crude Oil Price Analysis – Crude Continues to Look for Clarity

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market still looks as if it doesn’t really know what to do and as a result, it’s not a huge surprise that the $100 level has offered a bit of resistance early on Friday.

After all, most of what we’re seeing now is nonsensical games being played by Iranian and American officials as they act as if nobody will flinch.

That being said, it has been announced by the Pakistani government that Iran’s Foreign Minister is expected to be in Islamabad Friday night, so that may be part of why oil fell during the trading session, but we just don’t know.

At this point, I think it’s trying to find its range. $100 is a large, round, psychologically significant figure, so it does make a certain amount of sense that you would see a little bit of hesitation.

Brent Technical Analysis

The Brent market has pulled back as well. I think in this case, since we’re so far above the crucial $100 level, that we will see the $100 level maybe act as a little bit of support on a pullback. Brent, of course, will move in tandem with Light Sweet Crude and it should have a bit of a premium based on geography.

Ultimately, I think this is a market that, if you wait long enough, it’ll move in either direction by about 4%. Unfortunately, we’re being held hostage by the latest headlines, and I just don’t see how that changes. I think eventually oil falls, but it will fall to a higher level of baseline trading.