Crude Oil Price Outlook – Crude Oil Rallies After Airstrike

WTI/CL Technical Analysis

The light, sweet crude oil market has rallied rather significantly during the trading session, reaching all the way toward the $78 level before giving back some of the gains. This, of course, was the reaction to the Israelis striking Iran. And now we’re seeing whether or not this previous consolidation area offers a lot of noise.

And it does look like we are giving back some of these gains. So, I think it’s very likely we pull back a bit and then still have an upward trajectory, but this was definitely an overreaction at least so far. That being said, if the Iranians turn around and strike again towards the Israelis to up the ante, if you will, then that could send oil flying to the upside.

I think at this point time, it’s almost impossible to short this market. Brent markets did the same thing, breaking above the $75.50 level, but gave that back. And now I think we will probably settle back a little bit and see what happens over the weekend. The weekend, if things escalate, then oil could continue to go higher. But quite frankly, even with the give back that we’ve seen at this point in time, we’re still up something like 8%. So, oil definitely bullish, oil definitely overextended.

Brent Technical Analysis

I think Brent is going to follow the light sweet crude market to the upside, mainly due to a whole plethora of things. It’s not just the Israeli airstrikes. But it’s also the fact that this time of year is typically bullish anyways, so with everything kind of pointing to the upside, that’s the direction I have to look, but I want to find a better price.

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