WTI Crude Oil Technical Analysis
The light sweet crude oil market has struggled a bit in the early hours here on Friday. As the downtrend line continues to be a bit of an issue, with the 50-day EMA sitting just above it. Furthermore, we also have the $60 level in this same neighborhood, and that, in and of itself, being a large round, psychologically significant figure, causes some issues as well.
If the market were to fall from here, it would just continue a pattern that we had seen since that announcement of sanctions coming out of Russia or being applied to Russia, I should say. And of course, the reaction, which did exactly what it should do. Russia has been under sanctions for as long as I can remember, and it doesn’t keep Russian oil out of the market. We still have plenty of supply and a little bit of a lack of demand.
Brent Technical Analysis
The Brent market has also tried to rally, but you can see that the downtrend line and the 50-day EMA sit above there. So, I think all things being equal, this is a market that we’ll see selling opportunities on short-term rallies to show signs of exhaustion, which is exactly what I’ve done. And we’re in a nice down-trending channel at this point. If we do break out to the upside, it’s really not until we break above the $65 level that I think something has truly changed. I don’t necessarily think that crude oil is going to collapse at this point. I just think that it is in a bit of a funk that it just can’t seem to get beyond.
For a look at all of today’s economic events, check out our economic calendar.