Crude Oil Price Analysis – Oil Drops as Headlines Suggest Possible Peace

WTI Crude Oil Technical Analysis

The light sweet crude oil market gapped lower, as we get all kinds of… the headlines, of course, continue to move. The markets are looking at a potential agreement between the United States and Iran, but let’s face it, we’ve been here before.

Furthermore, you also have to keep in mind that it’s pretty thin trading, it is Memorial Day and a Whit Monday, and a couple other holidays in Europe that, quite frankly, I don’t know much about, but I do know this is a day that typically ends up being very thin. So, with that being said, I don’t read too much into this. And, quite frankly, it wouldn’t take much to spook the market and make it turn right back around.

The market has been in a range for a while. We are getting fairly close to it. I think things get interesting somewhere around the $88 level. We’ll see if we go that far.

Brent Crude Oil Technical Analysis

Brent markets have fallen as well. We are getting pretty close to support, also over here. I’d say it’s a little closer to $95. Maybe here, because we did bounce from this level previously.

But again, this is a situation where we’re just waiting for some type of conclusion. Supposedly, the Strait of Hormuz will be opened. I mean, there’s nothing that’s come out in the last 24 hours that hasn’t been said before. So, I think this is setting up for a potential surprise to the market.

Yet again, it’s more surprising to me that people continue to fall for this, but eventually it has to end, I suppose. That being said, the supply chain for crude oil is going to be a mess for a long time. So, no matter where we would fall to, it’s going to be higher than it once was.