Crude Oil Price Outlook – Crude Oil Drifting in Early Monday Trading

WTI/CL Technical Analysis

The light sweet crude oil market initially tried to rally during the trading session here on Monday, but gave back gains to show signs of hesitation. The $60 level, of course, is a large, round, psychologically significant figure that will continue to attract headlines. But it’s also the beginning of significant resistance that extends to the $62 level.

The 50-day EMA sits just below the $62 level, and I think ultimately, we’ve got a scenario where you continue to fade short-term rallies. I just don’t think the demand is out there, at least not at the moment. With this, I remain slightly bearish in oil overall.

Brent Technical Analysis

Brent markets, of course, have rallied a little bit as well, but just like the light sweet crude oil market, we’ve seen a bit of selling and a lack of being able to hang on to the gains. The 50-day EMA sits right around the $65 level, which is a significant area in the past for both support and resistance. So, we’ll just have to wait until that plays out.

If we can break above the $66.50 level, then we could be looking at a move to the 200-day EMA. Ultimately, this is a market that I do not think has any real momentum to it. So again, fading short-term rallies probably continues to be the way forward here, as the sanctions on Russia really don’t seem to be sticking in the market’s mind and therefore that idea of oil screaming higher based on this isn’t a reality now.

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