Crude Oil Price Analysis – Oil Continues to Jump on Headlines

WTI Crude Oil Technical Analysis

The light sweet crude oil market has spiked again to pierce the $115 a barrel level as new strikes on the oil facility at Kharg Island in Iran have people concerned about supply yet again. Ultimately, this is a market that is moving on every headline, and it seems like the headlines are getting worse, not better, so do not be surprised to see the market eventually break to a fresh new high.

Short-term pullbacks are possible and quite frankly likely, but I think there are plenty of buyers at multiple places that would keep this market somewhat elevated. The $110 level would be the first psychological level and then after that, you have the $100 level offering support as well.

Brent Technical Analysis

Brent continues to be very noisy, with the $112 level being a massive resistance barrier. Short-term pullbacks at this point in time are likely to continue to be buying opportunities with the $100 level being an area of potential support. With this, I do believe that the markets continue to see the opportunity to find value anywhere near the $100 level, and that is essentially what I would be looking for.

The upside could reach the $120 level, and I do think that although crude oil markets have spiked a bit during the session, I do think that we are still not ready to just scream through the upside unless there is an even bigger escalation. As things stand right now, we are still in the ranges that we had been in previously, it is just that we are getting more bullish. Looking for a little bit of value is probably the way to play this market going forward.