Crude Oil Price Outlook – Crude Oil Continues to Trade in a Range

Crude Oil (WTI) Technical Analysis

The light sweet crude oil market has found itself slightly positive during the trading session on Thursday, as we are threatening the $60 level. Keep in mind that the light sweet crude oil market jumped higher after Russian sanctions were announced, pulled back to fill that gap, and now has simply gone sideways. This makes a lot of sense, considering that Russian sanctions are a thing we have been looking at for ten years, and it never really seems to change anything.

There are questions about demand and supply, considering that the Americans, the Saudis, and the Russians are all pumping out massive amounts of crude oil at this point. It looks like there is an area between $60 and $62 that remains difficult to cross to the upside.

Brent Technical Analysis

Brent markets look very much the same, with the 50-day EMA sitting at the $65 level—an area that has been both support and resistance along the way. Brent is still going to move on the same reason that the light sweet crude oil market moves, and that is oversupply and lack of demand.

This does not appear to be a market that falls apart anytime soon. It is more likely a market that spends a lot of time going back and forth, trying to sort out where to go next. Short-term traders will probably like this type of price action, as they can do a lot of back-and-forth trading, but as far as huge moves, they are not evident at the moment.

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