Crude Oil Price Analysis – Oil Continues to Rise on Threats of Escalation

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit in the early part of the trading session here on Thursday as we are now firmly back above the $90 level. All things being equal, this is a market that I think is trying to find its way back to the $100 level.

All things being equal, at this point, I think you have to look at this as a buy on the dip market, maybe a range-bound market, but it’s definitely not a market that you’re looking to short. As long as the war goes on, it’s hard to imagine that oil falls apart completely. As soon as the missiles stop flying though, it very well could. Currently, it looks like $85 is your floor in this market and $100 is your ceiling.

Brent Crude Oil Technical Analysis

The Brent markets have bounced as well, as we are bouncing from the crucial $100 level. The $100 level, of course, is a large, round, psychologically significant figure and an area where we have seen quite a bit of support.

Ultimately, if we do bounce from here, the $115 level is an area that I think offers resistance. Ultimately, this is a market that the bid is still in as long as the war continues and I just don’t see any signs of it ending completely.

So, I think we’re probably rising in anticipation of another round of strikes. If peace breaks out, the Brent market could find itself at $85 rather quickly, but right now it’s all about watching the latest tweets and headlines.