Crude Oil Price Analysis – Oil Sits Still for Once

WTI Crude Oil Technical Analysis

The light sweet crude oil market finds itself stabilizing around the $91.50 level, an area that it visited multiple times during the previous session. I think, really, at this point, we are just looking to build some type of range. After all, we do not really know what is going on in the Middle East, nor do we understand the supply and demand disruption mechanics at the moment.

There has been a lot of concern out there when it comes to the damage to the infrastructure, but at the same time, there is a lot of optimism for the peace deals. I think you are just in a moment of stasis here, where traders are trying to figure out what to do next. The 50-day EMA did, in fact, offer support during the previous session, which is also the 61.8% Fibonacci retracement level. I think a little sideways action probably makes sense here.

Brent Market and Outlook

The Brent market has rallied a little bit as well after falling to the 50 day EMA the previous session, showing signs of life. If the market can rally from here, then the $100 level would be the next target. The 50-day EMA should offer support, and again, I think Brent is just out there waiting for the next headline.

Things have calmed down and now the market has to determine whether or not things are going to get worse or if we are going to go back to normalcy. The closer we get to normalcy the more likely we are to fall from here, just as the first really bad headline we get may send oil in the Brent grade looking for $100, possibly even $110. Right now, it does not really look like that. It just looks like we are trying to settle down, so I would look for smaller movement barring headlines, of course.