WTI Crude Oil and Brent Forecast: Bulls Eye Value on Pullback

WTI Crude Oil Technical Analysis

Light sweet crude pulled back a bit during the trading session on Friday. That is probably not a huge surprise. We had gone parabolic, and therefore a little bit of a giveback is not the craziest thing to think about.

That being said, this is a market that will still be held hostage by the latest headlines and the potential for random noise. There are a lot of concerns about supply disruptions, and I just do not see how that disappears. With that in mind, it is very difficult to get short of oil at this point. I am more of a buy-on-the-dip type of person.

We have broken out pretty significantly and pulled back a bit. Sooner or later, people will be looking to find some type of value here, and it would only take one headline to have this thing freak out yet again.

Brent Technical Analysis

The Brent market looks very much the same. It has, at one point, been as high as just under $110 a barrel. It looks like it is heading back toward the $100 level. That is an area with a lot of psychology attached to it, as well as market memory, so I will be watching that area.

I honestly do not like the idea of trading oil right now because it just moves on the latest headlines, which are about as random as they get. Although the one thing that I do know is that anytime the market seems to cool off, something bad happens to send it back up in the air.

I remain positive on the price of oil. I just need to find some value here.

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