Crude Oil Price Analysis – Oil Drops to Kick Off Tuesday

WTI Oil Technical Analysis

The light sweet crude oil market has gapped lower to kick the day off on Tuesday on the wrong foot and it looks very much like a market that I think is trying to figure out whether or not we can actually drop all the way back to the 100 level. I think that’s a very real possibility here, but keep in mind we also have to pay close attention to the idea of whether or not the latest headlines coming out of the Middle East will rattle things, because let’s be honest, they very well could.

So, with that being said, I think a little bit of a drop here probably makes some sense, just as it’s more consolidation. I don’t really think we break down drastically and of course, you’re going to be very cautious if you do trade this market because the random tweet could set everything on fire.

Brent Oil Technical Analysis

The Brent market looks very much the same, I think we’re in a situation where we have gotten pretty close to a major resistance barrier and supply zone, so I think a pullback here makes sense as well. I’m really not a big fan of crude oil at the moment. I think we’re in a state of just hesitation.

If that’s going to be the case, it’s going to be very difficult for big moves to happen without some random action and like I said, that’s not something you can be prepared for. It’s obvious to me that above the 116 level, Brent really struggles to maintain gains. So, a little bit of a pullback here does make sense.