WTI, Brent Forecast: Supply Risks Keep Oil Prices Supported

WTI Crude Oil Technical Analysis

The light sweet crude oil market continues to see a little bit of volatility just below the $105 level as traders try to sort out what’s going on in the world. Headlines continue to throw things around, and ultimately, at this point in time, it seems like there’s a bit of an underlying bid in crude oil. That makes sense as the missiles and mines and conflicts continue to escalate. This is a continued issue, with a supply disruption being a major concern.

With that being the case, there is a serious concern about supply disruption going forward. That obviously brings a bit of concern about the price going higher, and it becomes a bit of a feedback loop. At this point, it looks as if any dip in this market could be thought of as an opportunity by many traders.

Brent Technical Analysis

The Brent market looks very much the same, with the $110 level offering a bit of a barrier and the $100 level underneath offering a bit of a floor. Overall, this is a market that is getting a little stretched, so some consolidation probably makes sense here. However, it is a market that, at least for me personally, is impossible to short just because of all of the risks out there that seemingly are going nowhere.

Ultimately, this is a market that I think would find a certain amount of interest near the $100 level, so I’ll be watching to see if I can find some value in that area. Otherwise, I’m probably on the sidelines here in this market, with so much uncertainty.

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