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

WTI Crude Oil Technical Analysis

The light sweet crude oil market initially rallied during the early part of the trading session on Wednesday, but it looks like it’s hesitating a little bit, and that does make a certain amount of sense. We are sitting just below the crucial $85 level, and of course, we have a lot of questions when it comes to the Middle East and whether or not we can actually get some sustainable peace in that region. There’s a lot of what ifs and a lot of what will happen next type of questions around the statements coming out of the United States and Iran.

And therefore, I think you have to look at this as a scenario where oil traders are probably playing it safe by maybe not playing at all. We’re hanging around the 50-day EMA. That also causes a little bit of technical resistance.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, although it is testing $90, that $5 premium is showing up This is a market that has recently rallied. It might be taking a little bit of a breather because, again, you don’t really know what’s going to happen in the Middle East yet. And every time it seems like we get a little bit of forward progress in the conversation, something happens. With that being the case, it’s no surprise that there’s no real clear directionality over the last couple of weeks as we’re just bumping along.

Ultimately, this is a market that unfortunately is going to be moving on the next headlines coming out of Tehran or Washington, D.C. We’re not real sure what those would be.

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