Advertisement
Advertisement
Crude Oil Price Outlook – Crude Oil Continues to See Floor Hold So Far
Published: Dec 19, 2025, 14:49 GMT+00:00
Crude oil is attempting a short-term recovery near key support, but persistent oversupply and weak structure keep rallies suspect. Any upside is viewed as temporary unless major resistance levels are reclaimed. With this, oil isn’t trusted at the moment.
WTI Crude Oil Technical Analysis
The light sweet crude oil market has rallied a bit during the early hours on Friday as we continue to try to build a bit of a floor in this market. The $55 level seems to be a bit of a floor. And therefore, I think we’ve got a situation where we are getting a little oversold, and this might be a buying opportunity, but I think it would be short-term at best.
After all, the overall attitude of the market is coming back into the phase of maybe cherry picking this value trade, but the oversupply of crude oil continues to be a major issue. I think that’s the story here. So rallies, while they could be played from a short-term perspective, should offer selling opportunities at the first signs of exhaustion, at least until we break above $60, which is not something we’re doing soon here.
Brent Technical Analysis
In the Brent market, we are at the $60 level, although that’s not as impressive. The market would have to break above the 50-day EMA at the very least to even consider thinking about buying for anything other than a short-term trade. Like I said, if you can watch the trade and babysit it, then maybe. Otherwise, you’re looking for a rally and a long wick to the upside to tell you that the buyers just don’t have the momentum. The longer-term structural situation for oil is pretty bad right now, and therefore, I just don’t trust rallies at this point due to the previous selling pressures.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
Advertisement