Crude Oil Price Analysis – Crude Oil Continues to Grind Back and Forth

WTI Crude Oil Technical Analysis

The light sweet crude oil market continues to be very noisy as we see a lot of volatility in general, and I think this is a market that will continue to look at the $85 level underneath as support. If we do pull back towards that area, I’d be interested in buying because, quite frankly, it seems to be well defended.

That being said, even if we do break down below the $85 level, we could see an attempt to test support at the $80 level, which I think will be a lot more solid than even the $85 level. I do not expect a major bounce from here. I just recognize that the supply of crude oil is still a problem, so therefore buying the dip has continued to work.

Brent Crude Oil Technical Analysis

Brent markets look very much the same, with $90 offering a bit of support. If we can continue to see buyers jump in and take advantage of that level, then you could see this market perhaps try to bounce towards the $98 level, maybe even the $100 level.

If we were to break down completely, then $85 is where I think the rubber meets the road, if you will, as it should be the hard floor in the market. Until the situation in the Middle East clears itself up, it’s very difficult for oil to break down significantly, and, quite frankly, I think it is fairly widely accepted now that we are going to have shortages in different parts of the supply chain because of everything that’s happened with the Strait of Hormuz.