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Crude Oil Price Outlook – Crude Oil Struggles with Barrier
Published: May 7, 2025, 13:53 GMT+00:00
The crude oil market rallied a bit in the early hours of Wednesday, as the markets continue to pay close attention to the idea that the US and China are talking soon. Furthermore, people will be out there looking at what the FOMC has to say later.
CL/WTI Technical Analysis
The light sweet crude oil market has shown itself a little bit hesitant to get above the $60 level during the trading session on Wednesday in the early hours, and we have turned around to show signs of hesitation, and a little bit of a pullback. That being said, I’m not overly concerned one way or the other mainly due to the fact that it is the same session that we get the FOMC meeting results and of course the press conference.
All things being equal, if we can break above the $60 level and close above there during the trading session, then I think you have a shot at trying to get to the 50 day EMA above. Short term pullbacks are more than likely possible with the $55 level being your floor in this present environment.
Brent Technical Analysis
Brent rallied as well, also struggled in this case just above the $63 level. And I think this is more of the same. We are in the process of trying to find the bottom and we are looking at a potential double bottom forming. So, with that being said, the market is likely to continue to be noisy because if we are, in fact, going to turn things around, that’s not an easy process. Keep in mind, there are a lot of concerns about global trade at the moment. And of course, whether or not tariffs will drive down demand for crude oil even further. OPEC has been flooding the market with supply. So that, of course, doesn’t really help the situation either.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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