Crude Oil Price Analysis – Is Oil About to Make a Run?

WTI Crude Oil Technical Analysis

The light sweet crude oil market is a little bit positive early during the trading session here on Wednesday as we await the Federal Reserve interest rate decision and, perhaps more importantly, the statement and press conference. We are breaking above the 200-day EMA, which in and of itself is a victory, and we are challenging the $63 level. Both of those should have traders interested.

With this being the case, I think you also have to understand that this is a market that has a lot of different factors going on at the same time. Perhaps the one thing that’s helping oil a little bit recently is a weakening US dollar. Nonetheless, I don’t necessarily think this is a situation where the crude oil market just takes off. We might make it to $66, but again, this is a choppy market and there’s still a ton of supply out there.

Brent Technical Analysis

Brent markets look a little healthier and I think they have a little bit more room to go as we could go all the way to the $70 level.

This is the beginning of a turnaround for both grades of oil. I’m fully cognizant of that, but we still have some work to do. If you are bullish of crude oil, you’ll be looking for pullbacks in order to take advantage of, but it’s probably worth noting that the volume isn’t anything extraordinary.

Of course, the Federal Reserve decision late on Wednesday and the press conference could turn things around rather rapidly. Geopolitics have been driving this a little bit higher, but the reality is the supply of crude oil is still pretty stout.