Crude Oil Price Analysis – Crude Oil Continues to be Supported

WTI Crude Oil Technical Analysis

The light sweet crude oil market rallied to kick off the session to the upside, testing the $100 level, but it has failed there.

This is basically a market that is still locking in geopolitical premium, but at the same time, there are differentials between light sweet crude and other forms of oil, as it’s mainly a North American product. So, while exports will increase drastically for the United States and Canada, it doesn’t really affect the overall market like it will some of the heavier grades that come out of the Middle East.

Ultimately, this is a market that I think if it does pull back, you’re looking for buying opportunities, at least until the war is over. And right now, the war does not look likely to end, so I believe buy on the dip continues to be the case here with the $92 level and the $88 level both being interesting areas. If we break above $100, then it could open up the next leg higher.

Brent Technical Analysis

Brent markets are above $100, and quite frankly, they should be because there’ll be more stress on the Brent market due to the types of oil that come out of the Middle East, and of course, the fact that European energy is thin at the moment.

A short-term pullback at this point in time will test the $100 level, but I think if we break below there, then it gets really interesting near the $92 level. After that, the $85 level is supported.

Anything below there, I think, would probably be a sign that the rally is currently starting to change its attitude, and it may be a deeper correction. Ultimately, I think you have to be very cautious with your position size, headlines continue to throw the market around and therefore, I think you have to look at this as a market where traders are looking for little bits and pieces of value to take advantage of.