WTI and Brent Stall at 50-Day EMAs as Volume Drops

Volume has been dropping through the week. Chris attributed the quiet to a lack of fresh capital and a reluctance to commit before the weekend. A single headline from the Middle East could gap the market higher or lower on Monday, he said.

The Strait of Hormuz remains effectively closed. There have been no direct military exchanges between the United States and Iran despite heated rhetoric. The disruption to oil flows persists, keeping supply risks elevated. Demand-side concerns have capped rallies, leaving the market in a consolidation zone.

The net result is a market with no clear edge for bulls or bears. WTI is sandwiched between the 50-day EMA above and the 200-day EMA below. Brent holds near $85 with support from the same longer-term moving average. Chris said the next move will likely depend on whether the Strait situation escalates or de-escalates. Until then, range-bound trading is the path of least resistance.

The Strait remains closed, and the analyst said it does not appear likely to reopen soon.