Crude Oil Price Analysis – Oil Continues to Move on Latest Headlines from Iran

Crude Oil Technical Analysis

The light sweet crude oil market has shown itself to be a little bit negative, but really, at this point in time, we are getting close to an area that should be rather supportive. And of course, we have a lot of questions to ask about whether or not peace is actually breaking out in the Middle East.

With that being the case, if we recapture the $100 level, I think that would be a sign that oil is ready to race higher again and it probably would be bad for risk appetite. We are bouncing a little bit already, so we’ll have to see. If we drop from here, we could be looking at the $95 level.

Brent Technical Analysis

The Brent market has found itself breaking through the $100 level earlier in the session, but we have bounced a touch. We’ll see whether or not we can break down below the $98 level. The $98 level is an area that a lot of traders will be watching very closely and if we were to break down through there, then we could open up a move down to the $92 level.

On a bounce from here, we could reenter the previous consolidation level, but I think ultimately this comes down to whether or not we are risk on, or risk off and what the headlines are coming out of the Middle East. As things stand right now, it looks like we are at least trying to find the bottom of this range. Again, if we can break down below $98, that might accelerate the downside.