Crude Oil Price Analysis – Oil Jumps as Talks Fail to Produce Results

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gapped higher to kick off the trading session on Monday as we start off the week with a bang due to the lack of agreement between the Iranians and the Americans in Islamabad over the weekend.

With that being said, it looks like oil is going to remain somewhat elevated, somewhat cautious, somewhat stressed, I believe. And given enough time, short-term pullbacks will continue to offer buying opportunities until we get some type of resolution to the war, or more specifically, until the Hormuz is open.

Pullbacks at this point probably see the $100 level as a bit of a short-term floor in this market, as the psychology for a large, round, big figure will be attractive to many.

Brent Technical Analysis

The Brent markets also look very positive early during the session on Monday, and at this point, it remains another “buy on the dip” situation. It’s very difficult to imagine a scenario in which I would be short of oil, anything short of the war ending really doesn’t seem conducive to that. Furthermore, the Strait of Hormuz must be opened to return to anything close to “normalcy.”

Now, we do have a ceasefire that’s still in effect, but the reality is the two sides are still pretty far apart in their agreement, and with that being the case, oil is going to still see quite a bit of buying pressure in the oil markets, as there are a lot of concerns still.