Crude Oil Price Analysis – Oil Drifting as World Waits for Next Headline

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market has fallen a bit during the trading session on Tuesday in early hours as we continue to see a lot of choppy behavior, which makes sense considering that we are moving on the latest headlines coming from the conflict in the Middle East.

With that being the case, you have to be somewhat cautious, but I also recognize that there is a certain amount of a floor in this market. The most immediate one is near $95, but I think the $92 level is a little bit more substantial. To the upside, you have the $100 level acting as a bit of a barrier, so we will have to see how that plays out, but breaking above there could kick off the next run higher.

Brent Technical Analysis

The Brent market is currently sitting right around the $97.60 level, just below the crucial $100 level. The $92 level over here is support again. This is going to be driven by the latest headlines. It does look like the oil market is starting to slow down, which leads me to believe maybe shorting could end up being the way to go.

We just need good news geopolitically to make that happen. I do think that oil has a higher floor than it did before the war. I do not expect to see Brent falling all the way down to $58, but I also recognize that once the tensions come to an end, then Brent has no business being $100 either.

With that being the case, I am looking to short, but we need a little bit of exhaustion to enter the market. We are just now, I believe, getting to that point, so a little bit of patience probably goes a long way.