Crude Oil Price Analysis – Crude Oil Continues to Move on Headlines

Crude Oil Technical Analysis

The light sweet crude oil market initially rallied a bit during the early part of trading on Wednesday, testing the $78.50 level but turning around to show signs of weakness. Ultimately, this is a market that I think is getting a little stretched, but we’ll have to see how oil is influenced by the war. Obviously, there could be a lot of bad headlines coming out to send it straight up in the air, but this grade of oil will probably fare a little bit better as far as fighting that upward pressure, as it is basically a North American thing.

With that, disruptions really aren’t an issue, although if we do see a lot of disruption of Middle Eastern oil, then it stands to make sense that Europeans will be buying oil from the United States. All things being equal, this is a market that I wouldn’t get short of, but I can plainly see on the chart how quickly you can get into trouble if you chase it. Chasing the crude oil market is one of the best ways I can think of right now to lose money.

Brent Technical Analysis

Brent markets, of course, have threatened the $85 level and they do look a little bit stronger, which makes sense considering where we are talking about in the world. And with that being the case, if you zoom out, the $85 level is an area that’s mattered a few times in the past. But we are starting to see signs of exhaustion from time to time.

I’m afraid that what happens here is that sooner or later, we get a sign of exhaustion that the market really digs into, and we drop significantly. I don’t know what would cause that—I mean, the most obvious would be a cessation of hostilities in the Middle East, although I don’t think that’s happening anytime soon. But we’re going to have to keep an eye on the Straits of Hormuz, production, things like that. This is going to be purely a headlin

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