Crude Oil Price Analysis – Oil Continues to Move to Headlines

WTI Crude Oil Technical Analysis

The light sweet crude oil market continues to be very noisy during the trading session on Tuesday, as we continue to see a lot of questions asked about where the markets are actually going to go via the war. Headlines overnight suggested that Donald Trump was willing to end the war before the Strait of Hormuz was opened, but we’ve seen the market pull back a little bit from the selling pressure to bounce right back up to where we had gapped to earlier. This round trip is starting to become a regular occurrence in Asia.

In other words, it’s basically chaos. The market does look like it is going to continue to treat the $100 level as a bit of a support level, so I’ll be watching that. To the upside, we have the $110 level as a potential target. This is a very likely scenario in this environment.

Brent Technical Analysis

The Brent market is likely to continue to be very noisy as well, but as we have seen in multiple other attempts at the downside, there are buyers coming in to take advantage of anytime it gets even remotely cheap. With that, I think it would be a “buy on the dip” scenario that continues with the $100 level being a floor in the market. I have no interest in shorting oil, at least not until the war is over, and we’ve learned that 1 tweet or 1 headline release certainly doesn’t mean that it’s over. This is a moving target, to say the least, and caution is necessary with any position you take on.