Crude Oil Price Analysis – Oil Diverging on Thursday

WTI Technical Analysis

The light sweet crude oil market gapped higher to kick off the session on Thursday as we are seeing yet further attacks on oil infrastructure as the countries in the Middle East are trying to keep themselves out of the energy business for decades and now we have a scenario where the light sweet crude oil market is going to be quite a bit different than the Brent market because of this.

The market initially gapped higher and then rolled over in the United States, so it does look like we are still very much in consolidation, sitting just below the $100 level, and I think this is going to continue to be a bit of a psychological barrier. That being said, if I had to pick one direction or the other, I still prefer buying perhaps on dips or even on a breakout above that $100 level that is sustained.

Brent Technical Analysis

Brent markets are flying to the upside testing the highs again. But they have pulled back a little bit from there, but whether or not we can break above the highs is not necessarily a difficult question for me. It certainly looks like that could happen, but short-term pullbacks could end up being buying opportunities.

Keep in mind that this is a market that is much more sensitive to the Middle East, and it now looks like we have a hard floor at $100. Expect wild swings in this market but I still think we have a situation where you are just trying to find value. You do not necessarily try to be a hero here and chase at extraordinarily high levels. I am looking for value; I will take advantage of it when it shows up.