Crude Oil Price Outlook – Crude Oil Attempts to Bounce Again

WTI/CL Technical Analysis

The light sweet crude oil market has rallied a little bit during the early hours on Tuesday, but really at this point in time, it’ll be interesting to see whether or not we can continue the upward trajectory. We are at least in the process of trying to form some type of double bottom, perhaps anchored on the $62 level. The move to the upside will be somewhat limited though. I think the 50 day EMA sitting just below the $65 level might cause some problems, assuming we even go that far. Anything above $65 then starts to face the significant resistance zone that extends to the $66 level. Quite frankly, I don’t know if crude oil does anything other than just simply go back and forth here.

Brent Technical Analysis

Brent markets look very much the same. I would suggest that perhaps the range in Brent is somewhat defined already, with 65 on the bottom being support and 70 on the top being resistance. If we break down below $65, that could bring us a move down to the $62 level, which would more likely than not drag the light, sweet crude oil market right along with it.

Keep in mind that oversupply coming out of Russia, OPEC, and the United States is the biggest issue we have here. But we also have to keep in mind that the global economy seems like it could be struggling a bit. And if that’s the case, that will have a detrimental influence on the crude oil market.

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