Crude Oil Price Outlook – Crude Oil Continues to See Volatility

WTI/CL Technical Analysis

The light sweet crude oil market has pulled back a bit during the course of the early hours here on Thursday as we are drifting back into the previous summer range. There have been a lot of comments by President Trump out there about what he believes the Russians are going to be receiving as far as tariffs. And he has been tariffing countries like India for buying Russian oil.

So, this had people worried about the price of oil, especially as he stated he didn’t think oil was overly expensive and therefore we have seen in the last couple of days a shot straight up in the air. I think a little bit of a pullback makes a certain amount of sense, mainly due to the fact that this is always a moving target and the 200 day EMA currently sitting at about $68.20 could be an area of potential support. If we break out to the upside, then $74 could get targeted.

Brent Technical Analysis

Brent markets have pulled back just a bit, and it looks like we are starting to fall back into that summer range as well. The 200 day EMA sits just below and that could offer support. I have been saying for a while, I do like the idea of buying dips in oil and that hasn’t changed. I just think that some of the momentum over the last couple of days is about to disappear.

Quite frankly, it’s not until he actually does something to Russia that people begin to worry. And even then, questions will remain as to how much effectiveness can there be? The market remains by on the dip until I see a different attitude, but that doesn’t mean that you want to jump into the market and start chasing it after it’s made a four or five dollars move. With this, I remain bullish.

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