Crude Oil Price Analysis – Oil Still in Range Despite Potential Peace

WTI Crude Oil Technical Analysis

The light sweet crude oil market initially fell on Wednesday as talk of peace broke out. That, of course, has people thinking that the supply may reopen, and the light sweet crude oil market has bounced since then from the $85 level. We will see if this continues to be an area of support.

The $85 level of course has been important multiple times, and it is worth watching very closely. The market breaking down below could open up a move down to $80 and I do think that could happen eventually, but we still have to get through the idea of getting rid of the conflict. Dropping interest rates also suggests that perhaps traders are starting to prepare for that.

Brent Crude Oil Technical Analysis 

The Brent market seems to be hanging on the $100 level, and the $100 level, of course, being a large, round, psychologically significant figure is worth paying close attention to. Bouncing from here opens up the possibility of a move to the $115 level, but we would need some type of external shock. Let’s be honest here, that external shock could come at any time from a tweet or an announcement.

If we break down below the $96 region, it opens up a drop to the $85 level. It’ll be interesting to see how this plays out, but as things stand right now, I think you’ve got a situation where you have to assume that the consolidation continues, but we are starting to get to the point where maybe the bears are starting to assert a little more control.