Crude Oil Price Outlook – Crude Oil Drops After Trump Comments

Crude Oil Technical Analysis

The crude oil market has pulled back a bit during the trading session here on Thursday as we broke below the $60 level. The 50-day EMA sits just below where we are right now, and a lot of this is driven by the fact that Donald Trump has suggested that perhaps the situation in Iran is calming down, and maybe there won’t be airstrikes or military action.

Whether or not that’s true remains to be seen, but the markets certainly are reading that into it, and we are starting to focus on the supply and demand situation where there’s far too much supply for demand. That is something that I was looking to trade, and of course, it has happened. Whether or not it continues to the downside remains, but I think the $55 level ends up being a very important floor.

Brent Markets Technical Analysis

The Brent markets look very much the same as we have pulled back from the 200-day EMA and now have dropped below the $65 level. Falling the way we have, I think it suggests that we are going to continue to go to the 50-day EMA, possibly even the $60 level.

I don’t have any interest in buying oil at the moment due to the fact that there just is no real demand. Countries like the United States continue to pump massive amounts of oil into the markets, and as long as that’s the case and there’s a somewhat lack of demand, I think you’ve got a situation where you’re fading rallies. This latest rally was the latest opportunity. I continue to look at this as a market that I want to be short of, not long.

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