Crude Oil Price Outlook – Crude Oil Continues to See Sideways Action

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market dropped a bit during the early hours on Friday, but you can see we’re still very much stuck in the same range we had been in. So, it does make a certain amount of sense that we just hang around this area.

The time of year, of course, is going to be somewhat illiquid and therefore, I think you’re going to see West Texas crude oil hang around this 50 day EMA for the next several sessions,  unless, of course, something external happens, you know, some geopolitics out of the Middle East or something to that effect. Once we get into January, we’re going to have to keep an eye on this $72.50 level, because I think a break above there kicks off the recovery for oil.

Brent Crude Oil Technical Analysis

Brent looks very much the same, a little weaker, of course, because it’s more of a global grade of crude oil. $70 underneath is a massive support level. $76 above is significant resistance. If we can break above that, then I think we could go looking to the $80 level.

All things being equal, this is a market that I just don’t have any interest in trying to get too big in at the moment, but I do realize it’s very likely that we are in the midst of trying to build up enough pressure to finally break to the upside. When you look at the longer term charts, we are at a massive support level now in both grades and of course, inflation will drive up the price of crude oil anyway. So, I think we are setting up for a fairly decent spring of 2025. But as things stand right now, we’re just killing time. If you’re a short-term trader, you’ve enjoyed buying dips as the market has offered plenty of opportunity for you.

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