Crude Oil Price Analysis: WTI, Brent Rise Early as Geopolitical Risk Lifts Oil Prices

Light Sweet Crude Oil Technical Analysis

The light sweet crude oil market gapped higher to kick off the trading session on Wednesday as it looks like the Iranians and Americans can’t be bothered to speak to each other. In this environment, it does threaten that oil could go higher. That being said, they’re not necessarily at war either, so everybody is just sitting around trying to figure out when the adults finally enter the room.

Currently, we are at the bottom of a larger range, so a bit of a bounce makes a certain amount of sense, but I think without some type of escalation, the $100 level is probably about as high as we go. With this, I do think that given enough time we probably see the occasional pullback.

I’m very leery of shorting oil, at least not until we have some type of real resolution. If we do, then it might be possible to break down towards $80. To the upside again, I think $100 in the light sweet crude is about as far as we go.

Brent Crude Oil Technical Analysis

Brent markets are hanging around the $100 level and that suggests that we are going to continue to look at that as a barrier. The $105 level could be a potential target. A breakdown from here could be interesting. The $96 level is support right along with $95.

All things being equal, this is a market that I do think is bullish in general, but again, it’s just based on the latest headlines from a random tweet or a random press conference or even an action in the Strait of Hormuz, so we’re kind of stuck.