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Crude Oil Price Outlook – Crude Oil Continues to Drop
Published: Oct 20, 2025, 14:36 GMT+00:00
The crude oil market continues to see a lot of negativity, as we are looking to test a major support level in both grades of oil in this analysis. At this point, the markets are showing that there could be a serious lack of global trade being seen.
WTI/CL Technical Analysis
The crude oil market has shown itself to be pretty lackluster in the early hours here on Monday, as we are trying to do everything we can to break down below the floor. The $55 level in the light sweet crude oil market is an area that’s been important a couple of times, as the market has clearly seen a lot of downward pressure and now the area right around the $55 level I think is going to be crucial.
It has been a double bottom previously, so the question is, will it hold now? If it doesn’t, then light sweet crude really falls apart. A bounce from here opens up the possibility of moving to the $58 level, maybe even the $60 level. I think $60 gets to be very difficult to break above in this environment.
Brent Technical Analysis
Brent markets have shown themselves to be somewhat soft during the session as well. And I think that probably continues to be the case here. It’s really not any different than the light sweet crude market because you have to worry about the overall supply being overdone by Russia, OPEC, and the United States. But in the same scenario, you have to keep in mind that there are a lot of questions about whether or not global demand will be strong as the global trade situation starts to deteriorate in a softening global economy. I do think oil is going to try to form some type of bounce in this general vicinity, but I also recognize it’s going to be a very difficult fight. Fading short-term rallies with signs of exhaustion is probably the easiest trade.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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