Crude Oil Price Analysis – Crude Oil Continues to React to Middle East Tensions

WTI Crude Oil Technical Analysis

The light sweet crude oil market has shown itself to be pretty positive in early trading on Wednesday, as traders are watching the Middle East very closely, and the fact that the Americans and the Iranians seemingly are never going to come to terms, it does suggest that crude oil should go higher overall.

At this point, it looks like the light sweet crude oil market is going to try to get to the $100 level, a large, round, psychologically significant figure that a lot of people will be watching. I think short-term pullbacks continue to be buying opportunities.

Brent Crude Oil Technical Analysis

The Brent market is testing the 50-day EMA at the moment, with the $100 level being a bit of a magnet for price. I do think if we can break above there, then we could go to the $104 level. This is an area that should be slightly resistive, but not necessarily a “ceiling.”

Short-term pullbacks are buying opportunities, with the $90 level being a massive floor. Keep in mind that Brent is probably a little bit more sensitive to what’s going on in Iran than the light sweet crude oil market, but the overall demand will continue to be a major issue because of supply constraints.

I do think that we go higher. Breaking above the $100 level probably accelerates that process at this point. I have no interest in shorting oil anytime soon in either grade. With this, I am bullish on oil, but I think waiting for dips might be the best route going forward.