Crude Oil Price Analysis – Oil Continues to Ponder the Next Move

WTI Crude Oil Technical Analysis

The light sweet crude oil market continues to hang around the $70 level, a large, round, psychologically significant figure that obviously catches a lot of attention. It’s also the top of the gap that we had been in previously, and the gap that kicked off the war. With the war seemingly winding down, we find ourselves basically where we started, which is not a huge surprise, as traders are trying to price in the glut of oil that’s coming through.

The question becomes more about the supply chain and whether or not we possibly enter some type of summer range. I would bet on the latter of the 2, although the supply chain will be disrupted as well, so that is most certainly something that we need to pay attention to. I think there’s probably more risk to the upside than down from here, although I’m not calling for a major move. Short-term bounce does make a certain amount of sense, but again, I’m not looking for much.

Brent Technical Analysis

The Brent markets look very much the same. They have filled the gap from the war being kicked off, and now it is looking at the $70 level as a significant amount of support. That support should hold; I don’t see why it won’t, and therefore I’m looking for short-term buying opportunities. I don’t think much of these short-term buying opportunities; I think we’ll probably end up in some type of small consolidation range before it’s all said and done. Quite frankly, summer does tend to be somewhat range-bound, so that would be the norm here anyway. I’m basically just betting on the oil markets doing what it is the oil markets typically do.

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