Crude Oil Price Outlook – Crude Oil Rallies Early on Tuesday

WTI/CL Technical Analysis

The light sweet crude oil market has rallied rather significantly during the trading session here in early trading on Tuesday, breaking above the crucial $65 level. This is an impressive breakout, but we still have a lot of noise between here and $70 that we have to contend with. The 200 day EMA is sitting just above the $62 level and dropping.

So that could be a situation that causes a bit of a pushback. At this point, I do think we are trying to grind higher, but I also think we’re trying to find some type of range to go back and forth. Ultimately, this is a market where I’m still neutral on, despite the fact that we’ve had a very strong session so far.

Brent Technical Analysis

Brent markets are doing much the same, breaking above the $69 level. The $70.52 level is where we see the 200-day EMA. So, we may run into resistance earlier here, but we could go as high as $73. It’s a very volatile market right now, and there are lot of questions because there are questions about demand. There’s increased capacity coming out of Russia, OPEC, and the United States. So, it’s a weird balancing act where, at the moment, we’re trying to find the equilibrium.

For what it’s worth, before open outcry, we are almost 3 % higher as oil is finally starting to move again out of this very tight range that we had been in, but is still in the larger range. I’m still neutral on this market, although if we can hold these gains, it’s a very pleasant surprise for the bullish.

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