Crude Oil Price Analysis – Rhetoric is Front and Center Here

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied pretty significantly in early trading on Friday as comments coming out of Iran suggest that hardliners are still pushing for aggressive building of nuclear weapons. There is now talk of US troops being involved. With this, I think you continue to see a massive risk premium in this product.

The $100 level above continues to be an area that I think a lot of people will be watching as a potential target and a little bit of a ceiling, truth be known. It does make a certain amount of sense that we run towards that area over the next couple of sessions.

Whether or not we break through will remain to be seen, but I certainly believe that this remains a buy on the dip market. I just don’t see how you short oil in this environment. Quite frankly, the comments change almost every day. They go a little more positive, a little more negative, and then you are right back to where you started.

Brent Crude Oil Technical Analysis

Brent markets are very much the same as well, racing higher. I think ultimately at this juncture, you have a situation where we are more likely than not going to find the $120 a barrel level again, which is, of course, where we pulled back from previously. If this keeps up, it is probably only a matter of time before we bust through there, which is, of course, the Iranian strategy. This remains very much “buy on the dip” as well. I see no real change in the market’s behavior anytime soon.

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