Crude Oil Price Forecast – Crude Oil Continues to Grind Slightly Higher

WTI/CL Technical Analysis

The light sweet crude oil market has shown itself to be a little bit noisy during the trading session on Tuesday, but really, at this point in time, we continue to see a lot of noise just below the 200-day EMA as you would expect. And with that being the case, if we can clear the 200-day EMA, then I think that it kicks off a bigger grind higher. The $65 level continues to be a significant support level as it was previously resistance. And you must keep in mind that this time of year, typically, we see more demand for crude oil. And generally speaking, this time of year, the market is typically going to rise during this timeframe. That doesn’t mean that we shoot straight up in the air, but what I do believe is that eventually we do grind towards 75 dollars.

Brent Technical Analysis

The Brent market is doing the same thing, it initially dipped, but now it’s just hanging around the $69.50 level. The 200-day EMA above is a significant barrier and potentially a target, while the $67 level underneath continues to be support for Brent. These markets will tend to follow each other, and that looks like what they’re setting up to do. We have recently broken out of a major consolidation area.

We have pulled back to find support, and now we are grinding to the upside. I do believe that eventually oil finds itself much higher by the end of summer, especially if the US can avoid a recession, which, according to the jobs data, may very well be able to do that. And if that is the case, that’ll put more pressure on the oil markets around the world as demand will certainly pick up.

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