Crude Oil Price Outlook – Crude Oil Continues to Look for Momentum

WTI/CL Technical Analysis

The light sweet crude oil market has dropped a bit during the early hours on Thursday, as it looks like we are testing the $60 level yet again. The $60 level, of course, is a large, round, psychologically significant figure and an area that’s been important multiple times. But what’s even more interesting for me in the light sweet crude oil market is that we formed a bit of a double bottom down at the $65 level. So, I do think we are in the process of trying to find the floor. This is a very messy turn of events. And quite frankly, I think if we ever get any movement in the trade tariff situation between multiple countries, that is probably what sends oil higher. Supply right now is just overwhelming demand.

Brent Technical Analysis

Brent markets look very much the same. I think there is a pretty significant floor at the $60 level with Brent. The $68 level looks to be a significant resistance barrier and an area that, if we were to break above, would be very bullish for Brent. As things stand right now though, I think we’re just trading in a range trying to find our footing. Brent of course, is more of an international grade and less than of American one.

So, it’ll be interesting to see how this plays out, whether or not we see growth in other parts of the world that might influence Brent. That being said, though, again, OPEC continues to flood the market with crude. And as long as that’s the case, there is a little bit of an overhang to this market. I don’t necessarily think that we break down drastically here. But I think we need some type of event to get this moving. Right now, we are essentially stuck in about an $8 range.

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