Crude Oil Price Analysis – Oil Looking Volatile Yet Again as Missiles Fly

WTI Crude Oil Technical Analysis

The light sweet crude oil market has been very noisy during the trading session here on Monday in the early hours, as we initially shot higher due to missiles being thrown at the Israelis and the Iranians. So, with that being said, I think you have to look at this as a market that will remain very volatile.

The market breaking above the 50-day EMA, then rolling back over, is not a huge surprise considering just how many headlines have flown across the terminal over the last several hours. Ultimately, I think the $85 level is the floor, and the $100 level is a bit of a ceiling.

Brent Crude Oil Technical Analysis

Brent initially took off towards the 50-day EMA but then rolled over as well, as it looks like the Americans are not willing to escalate. So, the Iranians and the Israelis shooting each other is a lot less of a concern, and I think the markets are looking through this.

Trump has already told them both to stop shooting. It doesn’t mean they’ll listen to him, but it at least shows what the United States is looking at, and they are looking to end this. So, with that, eventually oil will fall, although we are going to have shortages later this year. That’s already a problem.

Ultimately, I think short-term back and forth trading between $90 on the bottom and the $100 level on the upside, we just continue to see sideways action. This is a market that is still held hostage to the latest headlines, as we have seen on Monday.