Crude Oil Price Outlook – Oil Continues to Consolidate

WTI Oil Technical Analysis

The light sweet crude oil market initially pulled back just a touch during the early hours on Tuesday to break below the $60 level, but has since seen buyers jump back in. This is an interesting development because this market continues to look at the $60.50 level as a major barrier, followed by the 50-day EMA and the $62 level. The area between $60 and $62 has been important multiple times in the past, and therefore, it should have a certain amount of market memory attached to it. I still think we have a situation where crude oil has a hard time trying to break out. I think we’re just trying to carve out a new sideways move for the time being.

Brent Technical Analysis

Brent markets initially followed, only to turn around and go reaching to the $65 level. The $65 level has the 50-day EMA hanging around there as well, and the 50-day EMA, of course, is an area that I think is going to continue to be resistant—a bit of a barrier. Even if we rally from here, the $66.50 level becomes a major issue as well. Brent has the same problem.

There’s just an oversupply of crude oil at the moment, with the United States, OPEC, and Russia all pumping out a ton of crude oil. Now, I understand there is a sanction issue with Russia, but they find ways to get oil to the market. They’ve been going through this for years, and reality suggests that it will be more of the same as Russia always seems to find a way.

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