Crude Oil Price Analysis – WTI Bounces Waiting for Middle East Headlines

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market has rallied ever so slightly in the early part of the Thursday session as the market is trying to bounce a bit. Ultimately, this is a market that is going to be moving on the latest headlines and, unfortunately, the latest statements coming out of DC and Tehran, which means who knows what’s about to happen. The volatility remains and probably will remain for the foreseeable future as we just don’t have clarity at the moment.

That being said, I do think there will come a point where traders start to look at this through the prism of whether or not there is going to be enough oil flowing around the world. Stockpiles have gotten dangerously low in some places, and any flare-up in the Middle East could send this market straight back up in the air. From a technical analysis standpoint, the $70 level was support previously, so we’ll see if it acts that way again.

Brent Crude Oil Technical Analysis

The Brent market also has rallied a bit during the trading session on Thursday, with the $85 level above offering a bit of a juicy target for buyers, I imagine, with the 200-day EMA just below it and the 50-day EMA just above it. Ultimately, the $70 level over here has also offered support, and with that being the case, it is an area that I think traders will be watching.

To the upside, the $100 level is an area of interest, but it would take a lot to get there. It would probably take some type of headlines coming out of the Middle East that spooks the market. That’s been the pattern for months. I don’t see that changing anytime soon in this environment.

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