Crude Oil Price Analysis – Oil Continues to Move Higher on Fears

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit during the early part of the trading session on Tuesday as we are now above the $100 level in reaction to higher rates, which are pricing in more energy inflation due to the fact that the tensions in the Middle East simply are not going anywhere.

Because of this, I think short-term pullbacks continue to be buying opportunities, and in fact, over the last several days, we have seen a hammer and a neutral candlestick, suggesting that there were buyers coming in to pick this market up. I do think eventually we get back to the $110 level, but possibly even $115 above there. If we do pull back from here, I suspect that the 50-day EMA offers support.

Brent Crude Oil Technical Analysis

Brent markets are a little bit more aggressive, as you would expect, they’re going to be heavily influenced by what’s going on in the Middle East. And I think at this point in time we’re probably looking at a move to the $115 level.

That being said, if we like to pretend that there is going to be peace in the Middle East, someone somewhere will tweet something, then we may see a selloff but that will be short-lived. After all, it’s becoming increasingly obvious that this situation is going to go on forever, or at least something close to it. So, with that being the case, I do think that oil is going to remain high for quite some time.

Basically, it has become a game of chicken to see whether or not the Americans will either start blowing up everything in Iran and send in troops or back down. And that’s the game we’re playing. As long as we’re playing that game, there is a higher low in the oil markets; short-term pullbacks will continue to be buying opportunities.