Crude Oil Price Analysis – Oil Continues to Rally as No Real Progress Likely

WTI Crude Oil Technical Analysis

The light sweet crude oil market has pulled back a bit during the trading session on Wednesday, but then turned around to show signs of life again, as we are clearly nowhere near solving the Middle East problem.

At this point in time, I think the dips offer buying opportunities and that will continue to be the case because there are no adults in the room and there is no off-ramp for the stalemate. So, with that being the case, it would not surprise me at all to see this market go looking to the $110 level. Below we have the $100 level offering a little bit of support and, of course, the 50-day EMA, which sits right around the $93 level.

Brent Crude Oil Technical Analysis

Brent markets also initially pulled back only to turn around and show signs of life again and I think we are trying to get to the $115 level. A pullback from here opens up the possibility of a move to the $105 level, followed by the $100 level, where the 50-day EMA is racing to get to.

The $100 level obviously has a lot of psychology attached to it, so we have to pay attention to that, but given enough time, I do think that any drop from here probably attracts buyers yet again, as just in the case of the other grades of crude oil, this is about the fact that they just won’t stop. So while we aren’t necessarily in a hot war, we are definitely choking off global supply.