WTI Crude Oil Stalls at $92 as Geopolitical Rally Fades

WTI Technical Analysis

Oil markets could be a bit interesting. We have a bit of a push-and-pull situation right now. We have the situation in the Strait of Hormuz as light sweet crude tried to break above $92, but it just can’t get its momentum together to really take off.

Despite the fact that there does seem to be an escalation yet again in that region, I think the market is becoming more and more immune to those types of shocks. At least it’s not reacting the way it once did.

Light sweet crude is at the top of a range and could pull back. That’s one part of the scenario, but the overall situation is the conflict in the Persian Gulf. But at the same time, it looks like the Federal Reserve is likely to hike, perhaps driving down demand. So, it’ll be interesting to see how this plays out. Certainly, looks weak in the early part of the session.

Brent Technical Analysis

Brent markets look very much the same, with $96 causing a bit of a headache, as $95 did previously. We just seem to be floundering, and I think that’s the problem here, as traders cannot get a solid read on what they want to do, or even what they should do.

We just have a market that is beholden to the latest headlines, and those latest headlines can pop up at any given moment. It’s very difficult to keep track of what’s going on.

Overall, it’s pretty neutral looking to me. That is probably more indecision than anything else. Keep in mind that the Federal Reserve tightening situation will get more information on Friday with the jobs number, so that could be a mover of pretty much everything.

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