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

WTI/CL Technical Analysis

The light sweet crude oil market has fallen pretty significantly during the trading session on Monday, but it does look like we are trying to turn things back around and show signs of life. Ultimately, I do think this is a market that given enough time, we probably will try to test the $60 level, which I think will be a barrier. Keep in mind, this has been an extraordinarily negative market. And I think that probably continues to be the major issue here. The $60 level might be a nice shorting opportunity, but in the short term, it looks like we’re probably going sideways.

Brent Technical Analysis

Brent is hanging around the $60 level again, and it does look like it is trying to sort out what to do. I think at this point in time, Brent is probably due for a bounce, but I don’t know that we have changed the trend. I think more than anything else, what we have is a situation where the market just chops back and forth in a relatively tight range. Keep in mind that the crude oil demand is a bit of a question at the moment, especially as OPEC is looking to fully flood the market with supply, it seems. So, with all of that and concerns about global slowing, I do think that oil is going to continue to have a bit of trouble. That doesn’t mean that we break down wildly, I just think that at best you’re looking at sideways consolidation.

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