Crude Oil Price Analysis – Crude Rockets Higher on Thursday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied rather significantly during the trading session on Thursday as traders are still worried about the Strait of Hormuz being closed as the speech by Trump overnight did not do much to calm nerves. With that being the case, we are looking at light sweet crude threatening the $110 a barrel level and probably going to break through it without some type of external pressure.

At this point, it looks like the light sweet crude oil market remains a buy on the dip type of scenario with the $100 level offering a bit of support. Until something changes in the Middle East, you still have to figure that there’s bullish underlying pressure.

Brent Technical Analysis

The Brent market is also racing higher as it is looking to get to the $110 level and then eventually to the $120 level. We have bounced from the crucial $100 barrel level, which obviously has a lot of psychology attached to it, but it has been structurally supportive for the last several weeks. This could continue to be an important level to watch for any buying opportunity that appears. If it breaks, this would be a bad look for oil.

So, I think at this point in time, you are looking at a situation where traders are looking to buy each and every dip that comes along until the war ends, I think. With this being the case, oil remains extraordinarily positive, but when peace does finally get signed as far as an agreement is concerned, you’re probably going to see oil collapse, so just be aware of that.