Crude Oil Price Outlook – Crude Oil Bounces After Drop

WTI/CL Technical Analysis

The light sweet crude oil market initially fell during the trading session here on Tuesday but has found support in the same general vicinity that we continue to see time and time again. This is a market that has been rangebound for a while. And considering that we are bouncing from basically the $62 level, I suspect that means that we are going to stay in this range.

Really at this point in time, there’s nothing to move oil drastically other than maybe potential flare-ups in the Middle East, but even the Middle East seems to be calming down overall. The United States, Russia and OPEC are all pumping oil out as fast as they can. So, I think really you just stay between $62 and $66 at this point, trading it back and forth as we try to sort out where our next bigger move is going to head.

Brent Technical Analysis

Brent markets look very much the same, and the 200-day EMA or the $70 level are offering resistance, with $65 underneath offering support. Most of our time has actually been spent between $65 and $69. And again, I just don’t see anything that changes here. This is a market that’s going sideways for a reason.

And it had been going sideways multiple times leading up to this last couple of weeks, with the exception of basically when Israel and Iran were trading missiles and bombing runs. So, with all of that being said, think oil is in a good state of balance right now. Range bound traders will continue to jump into the Brent market as well as the light sweet crude market and take advantage of it.

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