Crude Oil Markets Take a Plunge
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market fell rather hard during the trading session on Monday, as news of a potential Iranian deal has come out. At this point, the market is likely adjusting to an increase in supply, and of course, the fact that Chevron has been given permission to operate in Venezuela should continue to flood the market with supply. Quite frankly, oil markets look as if they are ready to go looking towards the 50 Day EMA.
Whether or not supply can catch up with demand is a completely different question, but at this point, the market is likely to see a bit of a pullback if nothing else, in order to show signs of stability. If we were to break down below the uptrend line though, that would be extraordinarily negative.
Crude Oil Technical Analysis Video 29.03.22
Brent Oil Technical Analysis
Brent markets also fell significantly during the trading session on Monday, as we have reached the $109 level at one point. This looks like a market that probably has further to go to the downside, simply due to the fact that we had gotten far too ahead of ourselves, and the market pulling back could simply be a matter of building up momentum. However, with the Iranian deal, it is likely that we could see a flood of new supply into the markets. In fact, the question now is whether or not Russia can be replaced between Iran and Venezuela? That certainly seems to be the plan of the Biden administration, and therefore it will be interesting to see how this plays out. For what it is worth, we are seeing calls for $200 per barrel, and once we get these hyperbolic suggestions, you are more often than not closer to the end of a move.
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This article was originally posted on FX Empire