Crude Oil Price Outlook – Oil Continues to Attempt to Grind Higher

WTI/CL Technical Analysis

The light sweet crude oil market has shown itself to be slightly positive in early trading on Wednesday again, but we’ve seen this pattern play out over last couple of days, when we rallied nicely and then gave back the gains to form a couple of inverted hammers. So, with that being said, I think you’ve got a situation where it just looks heavy. That being said, the market is likely to continue to see the $66 level above as a massive resistance barrier and the $62 level as a massive support level.

I think ultimately, we’re just somewhat stuck in this range. That being said, the Strategic Petroleum Reserve has been gradually getting bigger. So that is going to take some buying pressure out of the market. The EIA report comes out a little later, so pay attention to that.

Brent Technical Analysis

Brent also has rallied a bit during the trading session on Wednesday to show signs of life again as we threaten the 50-day EMA. That being said, the market is still very much in a range here as well, with $70 on the top offering resistance and $65 on the bottom offering support. The 50 day EMA is flat and again, we have a problem with overproduction.

Russia, OPEC and the United States are all just drilling at full speed. So, with that being the case, I think at best we’re probably looking at a sideways market for the time being, as traders attempt to make sense of where we are going.

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