Crude Oil Price Outlook – Crude Oil Continues to Hang onto Support Area

WTI/CL Technical Analysis

The light sweet crude oil market has initially tried to rally a bit in the early hours on Tuesday, but then gave those gains back to show signs of hesitation. All things being equal, this is a market that I think is going to continue to be very choppy overall. The $65 level above is an area that’s been important multiple times from both a support and a resistance standpoint. And if we can break above it, then we have to deal with the 50 day EMA. And it’s because of this that I think we probably go sideways more than anything else, as we try to figure out exactly what’s going to happen with overall demand.

Brent Technical Analysis

The Brent market also finds itself testing an area of pretty significant support and resistance. Ultimately, if we were to break above the $68 level, then we would have a real chance of bumping to the 50-day EMA and possibly even the 200-day EMA. On the other hand, if we break down below the lows of last week, we could drop towards the $62 level. I think at this point in time, oil has a lot of problems because we don’t know what’s going to end up happening with some of the biggest economies in the world and trade. And then on top of that, we don’t really know what to do with all of the excess supply.

Right now, OPEC is expanding supply heading into September. The United States is drilling more than it ever has. And of course, Russia is now starting to pour oil into the market. So, with all of that, I think this is a market that may go sideways, maybe even favor the downside a little bit. I just think there’s a lot of confusion at the moment.

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