Crude Oil Price Outlook – Crude Oil Continues to Drop

WTI/CL Technical Analysis

The crude oil market continues to see a lot of negative pressure overall as OPEC has decided to expand its drilling for the day by over half a million barrels. So that, of course, is very negative for crude oil pricing as we are plunging in the light sweet crude oil market down toward the crucial $65 level. Ultimately, this is a market that I think needs to try to sort out whether or not this range is going to be held. At this point in time, I think you have to recognize the fact that this is a market that previously had seen the $65 level as crucial. So, a little bit of market memory makes sense here, as it could cause a reaction.

Brent Technical Analysis

Brent markets are also falling pretty significantly. And I think at this juncture, you have a scenario where traders are simply waiting to see if $68 will hold. If $68 holds, then this could be a buying area. But again, you have to worry about whether or not the floor breaks. And if it does, then we could open up and move down to the $66 level, possibly even down to the $62 level. All things being equal, I think crude is doing everything it can to maybe stay in a range. The next day or two would be crucial. If we do stay above this area, then I’m just going to continue to trade it back and forth like I was before.

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