Crude Oil Price Outlook – Crude Oil Continues to Drift Higher

WTI Crude Oil Technical Analysis

The light sweet crude oil market continues to drift a little bit higher on New Year’s Eve, but let’s be honest here, this is a market that is still pretty suppressed when it comes to risk appetite and there is a significant amount of resistance above that could cause a little bit of an issue. The 50-day EMA and the downtrend line both will continue to be a bit of a barrier, and signs of exhaustion I think, are going to be sold into.

This is a market that is suffering at the hands of a lack of demand for the massive amount of supply that is still out there, especially coming from places like the United States and Guyana. I fade signs of exhaustion after short-term rallies. This looks like it’s probably setting up for that on Friday or maybe even Monday at this rate.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, although it has a little bit more room before we hit the downtrend line and the 50-day EMA. But again, I think a short-term rally that shows signs of exhaustion is an invitation to start selling. If we can break above the $64 level, then we could go to the $65 level, where I think you have a serious fight.

Ultimately, this is a market that continues to see a lot of downward pressure for the same reasons as the light sweet crude oil market, and I do think it’s probably only a matter of time before we revisit the bottom again. However, we have New Year’s Day to get through, and of course, Friday will be shortened and thin, so this is pretty much a next week story at this point, from what I can imagine.

The light sweet crude oil market continues to drift a little bit higher on New Year’s Eve, but let’s be honest here, this is a market that is still pretty suppressed when it comes to risk appetite.

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