Looking ahead, a potential Israeli ground operation in Gaza could trigger a spike in crude prices.

The West Texas Intermediate (WTI) Crude Oil market encountered a significant drop early in the trading session on Thursday. The market’s current state is rather tumultuous, reacting swiftly to every bit of news coming out, especially regarding the situation in Gaza. It seems that the price of oil is almost directly correlated with the developments in that region. As Israeli forces appear to be taking a more measured approach with their land invasion, oil prices are responding by decreasing. Conversely, any escalation in tensions is promptly reflected in a rise in oil prices.Trading in such a volatile environment requires a high degree of caution. In truth, when a market is this reactive to real-time news, particularly in a situation as fluid as this, it might be wiser to steer clear of trading until things stabilize. However, it is worth mentioning that there appears to be a stable support at the 200-Day Exponential Moving Average for those closely monitoring the situation. Volatility is Likely to PersistSimilarly, the Brent crude market is showing signs of strain, testing the lows set in the previous trading session. The $85 level is emerging as a critical support zone, coinciding with the 200-Day EMA in the futures market. Much like WTI, Brent crude prices are intricately tied to the geopolitical landscape, adding to the trading complexity. The unpredictability makes oil trading a challenging endeavor right now.Looking ahead, a potential Israeli ground operation in Gaza could trigger a spike in crude prices. On the upside, traders are eyeing the $90 mark as a significant and psychologically important level, with the potential to extend gains towards $95 if broken. In these uncertain times, either staying on the sidelines or maintaining a small enough trading position to mitigate potential losses seems to be the prudent strategy. Volatility is likely to persist as the geopolitical situation remains in flux, requiring traders and investors to stay vigilant and cautious.  More By This Author:GBP/USD Forecast: Looks Vulnerable To Greenback Strength
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