Crude Oil Price Analysis – Oil Sitting at Extended Levels

WTI Crude Oil Technical Analysis

The crude oil market has been all over the place early on Friday as we continue to get messages out of the Middle East of a potential ceasefire extension, possibly a counterproposal by the Iranians. Really, at this point, I don’t think the market truly knows what to do with itself and as long as that’s the place that the market finds itself in, we are going to see choppy volatility.

That being said, we are a little overextended in the short term and I think that is a major factor in what’s going on. The $110 level in the light sweet crude oil market seems to be an area of interest, so I am waiting to see whether or not we will roll over again. The $100 level I suspect would be support underneath and with that being the case, I’ll be watching to see if we bounce from there as well.

Brent Technical Analysis

Brent markets find themselves very choppy and a little confused. That makes a lot of sense, we’re going into the weekend, people don’t want to hold huge positions in either direction heading into the weekend would be my guess. With that, I think you have to look at this as a market that will continue to be noisy right around the $115 level. It’s proven to be pretty reasonable resistance.

Short-term pullbacks at this point I think open up the very real possibility that we are going to continue to see buyers come in at $105 and $100. Again, I think this is a wait and see type of market. We are overextended, I would suspect a drop is probably easier than a rise, but the right headline could send this flying right along with the other grades of crude oil.