Crude Oil Price Analysis – Crude Continues to See Range Forming

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit during the trading session on Friday as we continue to chop back and forth around the $60 region. We have the 50-day EMA sitting just below and the 200-day EMA sitting above. I think both of those become very interesting places to trade this range.

I think right now we are just trying to sort out where we are going next. It does make a certain amount of sense, considering that the demand for crude oil is shrinking and the supply is growing. Now, having said that, if we can get a little bit of relief from potential trade tensions, which seem to flare up every few days, that might help oil as well.

Brent Technical Analysis

The Brent markets look very much the same. You see the market being somewhat attracted to the $65 level, and we are between the 50-day EMA underneath and the 200-day EMA above. The market continues to be very noisy, and I think we will end up in a situation where we are just simply bouncing back and forth, at least for the time being, while we try to sort out whether or not demand is going to pick up.

It is worth noting that both grades of crude oil have bounced from a massive floor, and now we are just kind of hanging out. We are trying to sort out whether or not this is a market that continues to see sideways action or whether or not we can see demand pick up enough to really get things moving. That being said, it is a short-term trader’s market and therefore should be thought of in those terms.

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