Crude Oil Price Outlook – Crude Fills the Gap

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit during the early hours here on Thursday as we continue to see a lot of noisy behavior. All things being equal, this is a scenario where traders are looking at this as a market that may or may not recover. The massive selloff during the Wednesday session does really drive home the idea of a downtrend, and we have filled the gap from the Russian sanctions announcement, so do keep that in mind. Ultimately, I think this is a scenario where short-term rallies probably continue to get sold into. So, I’m looking for signs of exhaustion to do so in a short-term trading environment.

Brent Crude Oil Technical Analysis

Brent, of course, looks very much the same. I think the $65 level above will continue to be a significant resistance barrier. If we can break above there, and by extension the 50-day EMA, then the Brent market could really start to take off. That being said, I don’t see that happening very easily. It is a fade-the-rally type of situation here as well. Much like in the light sweet crude market, we did fill that gap from the announcement of fresh Russian sanctions. Whether or not we take off to the upside remains to be seen. I don’t really see the momentum here. The volume isn’t necessarily overly strong, so I think we are trying to hang around and form some type of sideways action at this point as we are trying to find a base, or even range.

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