Crude Oil Price Outlook – Crude Oil Continues to Look Threatened After Russian Announcement

WTI/CL Technical Analysis

The light sweet crude oil market is rallying slightly during the trading session here on Thursday, but we are barely hanging on to any semblance of bullish pressure. The situation got a little bit more dire for the bulls on Wednesday as Russia announced it was going to increase production. So now you have the Americans producing more than they ever have.

You have OPEC increasing production, and now you have Russia increasing production. So, there is a supply glut that we have, and I think that’s going to continue to be very difficult to deal with, if you are in fact bullish in this market. If we break down below the bottom of the candlestick from Wednesday, I think at that point we will probably drop to the $60 level.

Brent Technical Analysis

The Brent markets, of course, look very much the same. And if we break down below that Wednesday low, it could open up and move down to the $64 level. Typically speaking, this time of year is generally a bullish time of year for demand and pricing. So that still comes into play. But if we have everybody around the world trying to pump as much oil as possible, that is going to be a problem.

So, with that, I look at this through the prism of a market that probably will try to rally a bit, but I don’t know if it’s going to pick up any traction. I think we’re going to continue to just sit on this support, but I do have those levels in both grades of oil that if we break down below, I think we fall pretty hard.

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