Crude Oil Price Outlook – Crude Continues to Look Soft

Light Sweet Crude Oil Technical Analysis

The light sweet crude oil market has gapped higher to kick off the trading session, only to turn around and fall again. At this point in time, it looks like we are in the midst of trying to bottom, and the $55 level is something to watch very closely because it is very important. The $55 level is a pretty significant area, and if we were to break down below there, it opens up a move down to $52 pretty quickly.

A rally at this point in time still looks like a shorting opportunity all the way up to at least $60 because oil has not been able to pick itself up off the floor, and nothing has fundamentally changed to make that any different.

Brent Technical Analysis

Brent markets also gapped higher to kick off the trading session on Thursday but then turned around to fall and fill that gap. The market is sitting right around the $60 level as this is being recorded, and this is a scenario where traders are going to be looking very close to see if there is some type of rally that can be sold.

There would have been a preference for more of a bounce to take advantage of, but that has not happened yet. If the market breaks down below the $58 level, the bottom falls out, and it likely goes looking to the $55 level very quickly. The same problems have plagued the oil market for a while now. Oversupply from Russia, OPEC, and the United States continues to cause issues in a somewhat low-demand environment globally.

For a look at all of today’s economic events, check out our economic calendar.