Light sweet crude market had a slightly bullish session on Wednesday, as it bounced from the recent support level at the $85 mark. This looks like more consolidation, but we still feel that the $90 level should continue to keep pressure on this market to the downside. Needless to say, it could be the Iranians that move things given their propensity to saber rattle, and we think that that will always be a bit of a risk in this market if you are short.
Looking at the charts we are very comfortable selling at 90 on a week candle, or even selling on a break below the $84.50 level. However, if we see a daily close above the $90 level, we are willing to go ahead and buy it for a move up to $100. We still think overall that the demand for crude will continue to be weak enough to keep this market lower though.