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

WTI/CL Technical Analysis

The light sweet crude oil market has gone back and forth during the trading session here in pre-market trading on Thursday. And with this, I think you have to recognize the fact that the market is at least trying to stabilize. If we do rally from here, I think you’ve got a situation where the $60 level will offer a certain amount of resistance extending to the $62 level.

And with this being the case, I think any type of rally that shows signs of hesitation is going to be stepped on at the first signs of exhaustion. Oil continues to struggle overall. And despite the fact that the last couple of days have been less bad, I think that’s probably not good enough.

Brent Technical Analysis

Brent markets are a little bit positive during the early hours here on Thursday. But again, I think you’ve got a situation where you’re looking for signs of exhaustion after a short-term bounce to take advantage of crude oil, and both grades have the same problem. Right now, we have oversupply coming out of Russia, OPEC, and the United States.

And of course, there are a lot of concerns as to whether or not the global economy is going to be strong enough to demand more crude oil. Ultimately, I think a bounce is probably more likely than not. But I also think fading that rally makes more sense, more likely than not. I have no interest in buying oil, at least not yet. I need to see some fundamental things change first.

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