The light sweet crude oil market looks very mush like a market that is trying to figure out what to do, as the Americans could attack the Iranians over the weekend.
Light Sweet Crude Oil
The light sweet crude oil market continues to see a lot of noisy behavior as traders continue to look at this through the prism of a market that is trying to figure out what to do next. After all, we have questions about the supply and demand situation and of course we have to worry about the fact that the Americans could end up attacking the Iranians and if that's the case, there will be a lot of concerns about some type of damage to the flows of oil around the world.
With this, I think you've got a situation where we have a market that is trying to figure out where to go next, but I also think we have a situation where there are so many moving pieces right now that a lot of people may not know what to do with this market. In fact, I believe that a lot of traders are probably simply avoiding it. This in a sense is part of what offers the market the ability to go back and forth.
Key Price Floors and Ceilings
I believe ultimately, we have a scenario where traders are going to continue to look at the $62 level as a floor in the market and the $66 level as a ceiling. Whether or not we can break out of there remains to be seen, but I suspect that if it is some type of attack by the Americans on the Iranians, it will be short-lived and probably turn right back around like we had seen previously.
If the Americans do not attack over the weekend, then I anticipate we are just simply stuck here sitting just above the 200-day.