Crude Oil Price Outlook – Crude Oil Testing Major Support

WTI/CL Technical Analysis

The light sweet crude oil market has fallen a bit during the course of the trading session in the early hours of Wednesday as we find ourselves at the $62 level yet again. This is an area that’s been very supported over the last two months or so. And therefore, I’m looking for a bounce. Now, that bounce isn’t necessarily something that I think will be major, nor will it be a huge trade, but a simple return towards the 50 day EMA makes a certain amount of sense, or possibly even the $65 level. Really at this point in time, oil doesn’t have anywhere to be from what I see. So, it’s not overly surprising that we find ourselves very possibly going sideways from here.

Brent Technical Analysis

Brent markets also have fallen, and they are looking to test major support in the form of $65, an area that’s held quite nicely over the last couple of months. If we turn around and break to the upside, then the market could go looking all the way back to the $69 level, but we also have the 50 day EMA near the $67.66 level. At this moment, I think oil still just goes back and forth. And I don’t really think we see a whole lot out there that’s changing the attitude. After all, there is plenty of supply. So that keeps a bit of a lid on the market.

But at the same time, there are tensions with Russia that take some of the supply out of the equation simultaneously. So, I think a lot of traders out there are also looking at the global economy and whether or not we are going to see global growth and demand pick up, or are we just going to continue to be in a state of stasis? I suspect the former is true.

For a look at all of today’s economic events, check out our economic calendar.