Crude Oil Price Outlook – Oil Continues to See Overhead Pressures

Crude Oil Technical Analysis

The light sweet crude oil market has gone back and forth during the course of the trading session on Monday, as we are hanging around the $58 level. We did jump higher after Russian sanctions in the very back part of October, but we have filled that gap since, and we are actually below the bottom of it. So that’s kind of interesting to see. Ultimately, I think you’ve got a situation where we probably will find support sooner or later. And I do think that we’re trying to figure out where the range is. That being said, a rally from this point should open up selling opportunities at the first signs of exhaustion.

Brent Technical Analysis

Brent markets also look like they are just now filling the gap and questioning whether or not they can go below it as well. If we rally from here, that’s fine. That would be somewhat expected. There should be some support. But the 50-day EMA and the $65 level both offer resistance that, on signs of exhaustion, I’d be more than willing to start shorting.

There is support down at the $60 level if we continue lower. All of that being said, keep in mind that the Russian sanctions won’t amount to much; they never do. And of course, there’s a serious lack of demand out there as economies are slowing down while OPEC, the United States, and Russia are all flooding the market with supplies. So downward pressure makes sense over the longer term. I look at rallies that show signs of exhaustion as shorting opportunities.

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