Crude Oil Price Outlook – Crude Oil Continues to Respect Range

CL/WTI Technical Analysis

The light sweet crude oil market has rallied quite nicely from the crucial $65 level during the trading session on Monday, as we continue to see that level offer a bit of a floor. In fact, we might be in the process of forming a little bit of a double bottom, but we’ll just have to wait and see how that plays out. The market rallying from here would make quite a bit of sense, considering that we have just been chopping back and forth.

But with that being said, I would also take a look at this as a situation where, if we do break down, below the bottom of the initial push towards the support level after the ceasefire in the conflict in the Middle East, which is roughly the $64 level, then I think it changes everything. Until then, I anticipate that the light sweet crude oil market will just continue to bounce around $65 and somewhere around $68, maybe $69 level, as we are just trying to figure out where the next level of demand is coming from.

Brent Technical Analysis

The Brent market looks very much the same in the sense that we found the $68 level to be very supported. And I think this continues to be the way forward. Ultimately, I believe that this is a market that is probably going to stay range-bound as well, as the markets see this summer season as typically positive, although there is a massive amount of supply out there that could cause a certain amount of trouble as well.

I don’t have any interest in shorting. I believe that we just simply bounce back and forth over the next several weeks until at least we get some type of breakthrough, as far as demand or some type of economic announcement that really rattles the markets. “Steady as she goes” seems to be the way going forward.

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