WTI and Brent Oil Forecast: Middle East Tensions Drive Volatility

WTI Crude Oil Technical Analysis

The light sweet crude oil market has found itself positive again in early trading on Monday as we find the weekend had a couple of very quick, minor strikes via missile in the Persian Gulf, and therefore tension is back up. That’s probably not a huge surprise here, given the fact that it was only a matter of time.

Right now, the market seems to be very volatile, and I think it could very well remain that way as long as we’re in this situation where we’re literally moving on the latest headlines.

Overall, this is a market that I would not want to short because it only takes one headline. But that being said, going long isn’t necessarily the easiest thing at times either when we have the potential of a sudden overture for peace, which would turn the market right back around.

The market continues to be thrown around by the latest headlines. I don’t know if that ends anytime soon, unfortunately, and as a result, it’s a very difficult world to live in right now, and this will continue to be one of the most difficult markets to trade from what I can see.

Brent Crude Oil Technical Analysis

Brent markets, of course, aren’t going to be much different. They gapped higher to kick off the trading session. There is a certain amount of resistance near $95.

The question is, do we escalate from here? Does the situation get worse? And I think that’s what most people are sitting around waiting to find out.

And if that’s going to be the case, we’re literally out there waiting for some type of headline to come in and cause chaos.

With this, I think oil is a market that retail traders do not have an advantage in, because the news can hit like lightning. Caution is the better part of valor.

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