Crude Oil Price Analysis – Crude Oil Falls as Americans and Iranians Continue Talks

WTI Crude Oil Technical Analysis

The light sweet crude oil market has fallen pretty significantly during the early hours on Thursday, as the $66.50 level is a major barrier, and this is an area that continues to be like a thorn in the side.

Keep in mind that the United States and Iran are opening up a third round of nuclear talks and that gives us a little bit of a reprieve in some of the pressure in the oil market. That being said, I think we are still trying to find the summer range, so I don’t think this thing falls apart. I just think that the market is going to continue to try to find a consolidation area with the 200-day EMA underneath as support.

Brent Technical Analysis

The Brent market has fallen below the $70 level, which is significant, but I think there is significant support at the $67 level, especially with the 200-day EMA sitting right around that area.

If we turn around and rally from here, the $72 level is a major barrier of resistance as well. Ultimately, this is a market that I think continues to be noisy. I think we continue to see a lot of questions asked about supply and demand.

There is quite a bit of supply. So, with that, I think you would need some type of external shock, such as United States and Iran military action between the two, to get the market truly taking off. I think we are slightly rising due to the summer driving season coming up. That makes a little bit of sense, but that’s not a huge mover in a market that’s oversupplied. Ultimately, I do think we’re supported, but finding a little bit deeper of a correction is how I more likely than not will trade this market.