Crude Oil Price Analysis – Oil Sees Buyers on Dips Again

WTI Crude Oil Technical Analysis

The light sweet crude oil market gapped lower to kick off the trading session on Monday, but you can see it has turned right back around to challenge the crucial $66.50 level. This is an area that I think you will be watching very closely. It’s been important multiple times in the past and if we can break above there with a sustained move, it opens up the possibility of $70.

Short-term pullbacks between now and then are very likely, as we’ve been range-bound. I do think that oil is pricing in a bit of a premium due to the fear of the US hitting Iran with military strikes, but we’re also starting to head towards warmer weather, which means more driving, so the demand should come up a little bit anyway. I’m not looking for an explosive move; I just think that it’s more of a buy on the dips scenario.

Brent Technical Analysis

Brent markets have shown the same behavior as well. I think somewhere right around $72.50 there’s a little bit of a barrier, but as things stand right now the most important price on the chart for me is $70 because if we can stay above there that suggests that the market is going higher and we are heading into that summer driving season in the Northern Hemisphere gradually.

We have the 50-day EMA trying to cross above the 200-day EMA kicking off the so-called golden cross, so that’s very bullish. I would also anticipate the Brent market is probably a little bit more sensitive to any military action the US takes, although at the end of the day, they both will be heavily influenced, so keep that in mind. I’m a buyer of dips; I don’t want to short oil, at least not at the moment.