Crude Oil Price Forecast – WTI and Brent Chop as Strait of Hormuz Standoff Continues

WTI Crude Oil

The Light Sweet crude oil market gapped a little bit lower to kick off the trading session, but turned around to show signs of life again. With this being said, the market continues to see a lot of noisy behavior in general, and therefore, this is a market that is basically sitting just above the 50-day EMA, an indicator that a lot of people will be watching.

But really, at the conclusion of the trading session, it seems like the only thing that is truly moving the market right now is the headlines coming out of the Middle East, specifically the Strait of Hormuz, and whether or not the United States and Iran can ever allow the strait to be open again. As things stand right now, we’re just grinding back and forth, trying to figure out who blinks first.

Brent

The Brent market looks very much the same, although it is making a new swing high, and the market has been basically recovering in a V-shaped pattern recently. Any flare-up at this point in time, one would think more likely than not drives up the price of oil, but that remains to be seen as well.

After all, traders have been all over the place in this market, and traditionally, this is a fairly quiet time of year. There’s a very real possibility that some are just staying off to the sidelines as the chaos that can hit the headlines at any given moment does continue to make trading crude oil very noisy. I’d say noisy and neutral might be a way I would describe the crude oil markets currently.