The light sweet crude oil market continues to see quite a bit of noisy behavior on Wednesday, as the markets are trying to balance the pressures between oversupply and geopolitical issues.
WTI
The light sweet crude oil market continues to see quite a bit of noisy behavior as we are sitting just above the crucial 200‑day EMA. With that being said, I think we are trying to sort out whether or not we are consolidating or if we are going to try to bounce and go much higher.
I suspect it is consolidation. The $62 level looks to be support; the $66 level looks to be resistant. In fact, I think you still have the problem with supply and demand; there is just far too much supply. That being said, you should also keep in mind that there are concerns about a US strike against the Iranians and maybe that is putting a little bit of a bid into the market.
Brent
Brent Oil Price Forecast
Every new Brent Oil analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Brent Oil forecastsBrent markets look very much the same as they are sitting above the 200‑day EMA right in the middle of a consolidation range. I don’t know that there are many changes here either. $65 is your support, $70 is your resistance with a whole lot of noise between the two. With this, I think there are opportunities to be found.
Remember crude oil likes to trade in small ranges of $5 to $10, so this jives well with history. I do think it is probably only a matter of time before short‑term traders take over the market and push it around in small ranges of $5 or less. As we are right in the middle of what looks like the next $5 range, I think you have to be patient and wait for the market to test and fail at one of the two extremes.