Crude Oil Price Analysis – Oil Continues to See Headline Pressures

WTI Crude Oil Technical Analysis

The light sweet crude oil market has broken down quite a bit during the early part of the trading session on Wednesday as we continue to see a market that is trying to price in the idea that perhaps there is some hope for peace in the Middle East. After all, despite the fact that we don’t have an actual peace agreement at the moment, the reality is that it looks like both countries, the United States and Iran, are trying to find a way out of this mess.

With that, it continues to put downward pressure on oil, but I think there is plenty of support near the $85 level, so we’ll see, a bounce could be imminent.

Brent Technical Analysis

The Brent market also found itself selling off, it looks a little weaker. That makes sense, Brent is a little bit more influenced by the Middle East than the light sweet crude oil market. At this point, we’re dancing around the $95 level.

If we bounce from here, I expect to see the $100 level offer a little bit of a barrier. If we can break above the $100 level, then that would obviously be very bullish. A breakdown below the bottom of the candlestick could open up a move down to the $90 level.

But ultimately, this is a situation where I think a lot of traders will continue to struggle, and I think we will get a lot of back-and-forth movement here. Short-term trades will more likely than not be the way forward here. I have no interest in putting on a big position at the moment.