WTI and Brent Crude Oil Hold 50-Day EMA Amid Middle East Risk

WTI Technical Analysis

The light sweet crude oil market has shown itself to be a bit noisy in early trading here on Friday, which makes sense because we are heading into the weekend and we will have to worry about headlines coming out of the Middle East. In fact, the headlines coming out of the Middle East could change at any moment, and it seems as if the market is trying to find some type of range right here along the 50-day EMA.

Currently, we’re in wait-and-see mode, and that’s been the play here for a couple of weeks. We are waiting to see whether or not the United States and Iran can get some type of conclusion. Until then, at any moment, we could get a headline that rattles the market.

Brent Technical Analysis

Brent markets are going to be the same thing, Brent, of course, sitting just above the $85 level as well, hanging on to the 50-day EMA, and the markets are again just in a state of waiting.

The longer this plays out in the Middle East, though, the more likely it is that traders will become worried about the European Union and getting energy there, so that could have an influence here as well as the natural gas markets.

Ultimately, though, the central banks around the world possibly tightening rates might slow down a little bit of consumption by tightening monetary policy. It does make a little bit of demand go, but at this juncture, this just looks like the same thing we’ve seen for several days. We’re just waiting around to see the conclusion of the conflict.

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