Crude Oil Price Outlook – Crude Bounces After Dropping Early

WTI Crude Oil Technical Analysis

The light sweet crude oil market fell initially again against the backdrop of the United States shipping 50 million barrels of crude oil out of Venezuela to help pay for the infrastructure of Venezuelan oil companies. That being said, the world suddenly realized that it was a little less than 5 days’ worth of American output, so really, at this point, it didn’t change much, and as a result, we’ve turned around to show signs of hesitation.

It looks like the $55 level will continue to be significant support, while the 50-day EMA and the downtrend line look to offer significant resistance. Ultimately, I think you have a lot of noise here, but I still prefer fading rallies as the oversupply of crude is still a major issue.

Brent Technical Analysis

Brent markets, of course, have done the same thing, and I think you’ve got a scenario here where we fall only to turn around and show signs of life. And again, we have the 50-day EMA and the downtrend line both offering resistance.

Brent will be a little bit more susceptible to shocks coming out of Venezuela, as it’s a heavier form of crude, but really, at the end of the day, they tend to move in tandem anyway. In the Brent market, I see the $58.50 level as your floor in the market and again, the downtrend line and the 50-day EMA as major resistance. But even if we broke above there, it really didn’t change the tone of the market, at least until we break above the $65 level, something that’s going to take a Herculean effort.

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