Crude Oil Price Outlook – Crude Oil Continues to Look for a Floor

WTI/CL Technical Analysis

The light sweet crude oil market has pulled back just a bit during the early hours here on Wednesday, but it looks like we are, in fact, trying to turn around and bounce. The light sweet crude oil market is currently testing the $63 region. If we bounce from here, the market is likely to go looking to the $64.50 level. Beyond that, the $65 level gets targeted as it is a large round, psychologically significant figure that has seen both support and resistance in the past. So, I think you’ve got a situation where you have to be somewhat cognizant that even if we do bounce from here, the upside is probably somewhat limited at this time.

Brent Technical Analysis

The Brent markets initially fell during the trading session on Wednesday but then turned around to show signs of life. All things being equal, this is a market that I think will be eyeballing the $67 level, as it was a significant area of both support and resistance previously. Much like the other grades of crude oil, Brent has to worry about the massive amount of drilling.

After all, OPEC, the United States, and Russia are all pumping away and increasing production. And that of course has a major influence on the overall supply of crude. And as long as that supply stays really healthy, it’s going to be difficult for massive rallies to occur. I think at best, at least for the time being, I’m looking at a market that consolidates just above current pricing.

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