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Crude Oil Price Outlook – Crude Starts to Bounce Ahead of FOMC on Wednesday
Published: Oct 29, 2025, 13:08 GMT+00:00
Crude oil is attempting to recover in early Wednesday trading, but resistance at the 50-day EMA near $62 remains significant. Despite recent headlines on Russian sanctions, oversupply concerns persist, keeping the market in a “fade-the-rally” mode until fundamentals shift meaningfully.
WTI/CL Technical Analysis
The light sweet crude oil market has bounced a bit during the early hours of Wednesday, as it looks like we continue to see a lot of noisy behavior overall. The market had rolled over at the 50-day EMA, and I think it makes a certain amount of sense that the technical indicator has offered resistance, especially as it was at the $62 area where we had previously seen support. So, I think it all ties together for market memory.
Ultimately, this is a market that I think got a little bit ahead of itself due to the sanctions on Russian companies because, quite frankly, that’s a story we’ve heard more than once. And with this, you have to question whether or not it’s going to be effective anyway. After all, sanctions on Russian companies are not exactly new things here. We do have to worry about whether or not there is still going to be oversupply or, for that matter, enough demand. So, I still think this is a fade-the-rally market, although we had the jump.
Brent Technical Analysis
The Brent market looks like it’s trying to recover as well, but again, I think the 50-day EMA comes into the picture here as potential resistance. And of course, we have to pay close attention to the idea of supply and demand. We do have several interest rate decisions coming out of central banks, so that can have a peripheral effect on these markets. But at this point, I think you just have to look for signs of exhaustion to short, at least until we get some type of fundamental change beyond the threat of sanctions, which, quite frankly, haven’t worked in the past.
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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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