Crude Oil Price Outlook – Oil Continues to Look Soft

WTI Crude Oil Technical Analysis

The light sweet crude oil market has gone back and forth during the trading session on Thursday, which is Thanksgiving in the United States. Keep in mind, this means that we have a shortened session, and of course, volume probably is minuscule.

We have been hanging around a bit of consolidation for a while, and Thursday didn’t change anything, as we have seen such choppy behavior. It makes sense that nobody is out there willing to put a ton of money into the market on a holiday. On rallies, I’m looking for signs of exhaustion to start shorting, especially near the $60 level where the 50-day EMA and the downtrend line both reside. If we break down below the low of the Tuesday session, basically breaking below $57, we go down to the $55 level, where I expect to see a hard floor.

Brent Technical Analysis

Brent markets have rallied ever so slightly, but at this point in time, we have a situation where it’s like swimming upstream. If we do rally, I’ll be watching that downtrend line and the 50-day EMA, assuming that we get anywhere near that. If we break down below the session on Thursday, it opens up a potential move down to the $60 level.

Crude oil will continue to suffer at the hands of oversupply as Russia, the United States, and OPEC are all pumping out tons of crude oil into a market that, quite frankly, is having trouble absorbing it as global economies slow down. Central banks are cutting rates, but that doesn’t seem to be enough to have people looking forward and thinking that demand is suddenly going to pick up drastically. Renna State of Malaysia, I continue to fade rallies in both grades of crude oil.

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